ZAR: Rand Edges Lower, Budget Talks Set To Resume Monday

USD/ZAR gains for the second consecutive day, with the greenback ticking higher this morning. The pair last deals at 18.4871, around 250 pips higher on the session, with bulls looking for a move towards Jan 13 high of 19.2296. Bears keep an eye on Jan 24 low of 18.3022.

• Market participants are eyeing the resumption of cabinet talks on the delayed 2025 Budget. News24 reported that FinMin Godongwana will propose a downsized 0.75pp VAT hike and a payment "holiday" from the Government Employees Pension Fund on Monday, while the Democratic Alliance (DA) continues to push back against any tax hikes.
  • Minister in the Presidency Khumbudzo Ntshavheni said that the revised March 12 date for the delivery of the 2025 Budget is "cast in stone" and confirmed that the cabinet will hold a special meeting on March 3 to review the Treasury's proposals.
• SAGB yields have ticked higher across the curve. South Africa's breakeven inflation rates sit at 4.60% and 5.62% across the 5--year and 10-year tenors respectively.
• The aggregate BBG Commodity Index has shed 0.4% and the precious metals subindex sits 0.9% lower on the session. Gold changes hands ~$15.7/oz. lower at typing.
• South Africa's trade balance and budget balance will hit the wires at 12:00GMT/14:00SAST.