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Positive Budget Supports ZAR, Negotiation Unions the Next Hurdle

SOUTH AFRICA
  • USD/ZAR trading higher at the open, having failed to close below 14.50 in yesterday's session.
  • Yesterday's budget has been received well across the board and should be ZAR supportive, provided Govt manages to follow through on fiscal consolidation targets in the face of overwhelming union pressure.
  • ZAR continues to be vulnerable to rising US real yields, similar to other high-yielders, but continues to shine as a brightspot in the EM space.
  • Commodities softer this morning: gold -0.78%, platinum -0.58% as markets dial in on US GDP today.
  • PPI data also in focus at 0930GMT expected to tick up slightly, reinforcing SARB's broadly hawkish posturing.
  • Sup1: 14.1526, Sup2: 14.4158
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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