June 12, 2024 08:42 GMT
Rand Extends Gains, GNU Talks Continue
ZAR
Spot USD/ZAR loses ground for the fourth consecutive day, with market participants monitoring domestic political risk. The pair's losses over the past few days have been at odds with the simultaneous upswing in the BBDXY Index, as the prospect of an ANC-DA coalition has become more probable.
- News24 reported today that the deal on a government of national unity (GNU) appears to be "in striking distance," despite resistance from some ANC structures and talks will continue today.
- Spot USD/ZAR last deals at 18.5597, almost 400 pips lower on the day. Bears look for a move through Jun 3 low of 18.4946, while bulls see the psychological figure/76.4% retracement of the Apr 19 - May 21 bear leg at 19.0000/19.0659 as their initial target.
- SAGB yields are lower across the curve (although now off earlier lows), with South Africa's 10-year breakeven inflation rate last seen at 6.57%.
- The aggregate BCOM Index has added 0.2%, with the precious metals subindex last seen 0.3% higher on the session.
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