MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Rand Corrects Yesterday's Advance, Inflation Comes In Marginally Below Expectations

ZAR
BulletEM BulletEmerging Market NewsHomepage

South African inflation data missed expectations at the margin, with headline CPI coming in at +5.2% Y/Y versus +5.3% expected. The rand has shown a muted reaction to the release of the data, having depreciated earlier this morning in a correction of yesterday's rally to fresh multi-month highs. The latest inflation data is unlikely to change the near-term rate outlook, given the SARB's intention to bring inflation sustainably to the +4.5% target mid-point and its signalling of a preference for an even lower target.

  • Spot USD/ZAR last deals at 18.1787, around 1,000 pips above neutral levels. The initial layer of resistance is provided by the 20-EMA at 18.4281. The RSI dodged entering oversold territory and is heading higher. Bears look for renewed losses past the psychologically significant 18.0 figure.
  • SAGB yields have inched lower across the curve, with South Africa's 10-year breakeven inflation rate last seen at 6.52% after a sharp decline from cycle highs printed in April.
  • The composite BBG Commodity Index has shed 0.3% today, with the precious metals subindex down 0.2%.
171 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

South African inflation data missed expectations at the margin, with headline CPI coming in at +5.2% Y/Y versus +5.3% expected. The rand has shown a muted reaction to the release of the data, having depreciated earlier this morning in a correction of yesterday's rally to fresh multi-month highs. The latest inflation data is unlikely to change the near-term rate outlook, given the SARB's intention to bring inflation sustainably to the +4.5% target mid-point and its signalling of a preference for an even lower target.

  • Spot USD/ZAR last deals at 18.1787, around 1,000 pips above neutral levels. The initial layer of resistance is provided by the 20-EMA at 18.4281. The RSI dodged entering oversold territory and is heading higher. Bears look for renewed losses past the psychologically significant 18.0 figure.
  • SAGB yields have inched lower across the curve, with South Africa's 10-year breakeven inflation rate last seen at 6.52% after a sharp decline from cycle highs printed in April.
  • The composite BBG Commodity Index has shed 0.3% today, with the precious metals subindex down 0.2%.