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ZAR: Rand Catches Breather After Fed-Driven Loss But USD/ZAR Stays Above 18.0

ZAR
EM BulletBulletEmerging Market News

Early trade has witnessed a correction of yesterday's Fed-boosted rally in USD/ZAR, with the pair last changing hands at 18.2354, almost 1,100 pips worse off on the session. Bears look for a dip through the 18.0 figure and Dec 12 low of 17.6191. On the flip side, bulls set their sights on Nov 14 high of 18.3951.

  • Bloomberg reported that South Africa's Policy Uncertainty Index rose to 65.7 in 4Q24 from 53.5 from the previous quarter, as the economy "remains in a slow and uneven cyclical upswing," while "global concerns and uncertainties have now arisen about the wider impact of intended foreign and tariff policies by US President-elect Trump." This comes as the formation of the government of national unity (GNU) reassured investors in the wake of the general election in May but coalition partners have been sparring over various policy issues.
  • SAGB yields climbed early doors before paring gains, with South Africa's 10-year breakeven inflation rate rising to 5.45% and printing its highest levels since early November in the process.
  • The aggregate BBG Commodity Index sits 0.4% lower on the day, with the precious metals subindex operating 1.1% below neutral levels.
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Early trade has witnessed a correction of yesterday's Fed-boosted rally in USD/ZAR, with the pair last changing hands at 18.2354, almost 1,100 pips worse off on the session. Bears look for a dip through the 18.0 figure and Dec 12 low of 17.6191. On the flip side, bulls set their sights on Nov 14 high of 18.3951.

  • Bloomberg reported that South Africa's Policy Uncertainty Index rose to 65.7 in 4Q24 from 53.5 from the previous quarter, as the economy "remains in a slow and uneven cyclical upswing," while "global concerns and uncertainties have now arisen about the wider impact of intended foreign and tariff policies by US President-elect Trump." This comes as the formation of the government of national unity (GNU) reassured investors in the wake of the general election in May but coalition partners have been sparring over various policy issues.
  • SAGB yields climbed early doors before paring gains, with South Africa's 10-year breakeven inflation rate rising to 5.45% and printing its highest levels since early November in the process.
  • The aggregate BBG Commodity Index sits 0.4% lower on the day, with the precious metals subindex operating 1.1% below neutral levels.