Rand Edges Higher Ahead Of SARB Rate Decision, 10-Yr Breakeven Inflation Rate Soars Past 7%

Spot USD/ZAR sits at 18.9207, a touch lower on the day but within the confines of yesterday's range, with market participants monitoring domestic political developments and awaiting the SARB's rate decision. Technically, Mar 13 low of 18.5066 remains on bears' radar as the initial target, while bulls look for a rebound above Feb 23 high of 19.3899.

• On the political front, the focus is on the second round of the legal battle between the ruling ANC and the newly established MK Party. The Electoral Court refused to de-register the MK Party yesterday, ahead of a separate case regarding their rights to use the name and logo of the now-defunct ANC military wing.
• Elsewhere, the SARB will announce the outcome of the latest monetary policy meeting during a press conference starting at 13:00GMT/15:00SAST. The central bank is widely expected to keep rates on hold.
• SAGB yields have crept higher and South Africa's 10-year breakeven inflation rate has moved above the 7.00% level for the first time since late October, refreshing cyclical highs at 7.01%.
• The composite BBG Commodity Index has shed 0.5% this morning but precious metals remain stable, with spot gold trading around $2/oz. higher on the day, reasonably close to its record highs.