Rand Extends Losses Along Precious Metals

USD/ZAR extends its move away from recent three-month lows (18.1581), last changing hands at 18.5945, up ~1,210 pips on the session. The Oct 26 high of 19.2710 is in sight, providing the initial topside target. Bears look for losses towards Nov 6 low of 18.1581.

• The rand remains under pressure from geopolitical factors, with South Africa's stance on the Israael-Hamas war complicating its relations with the US, not too long after the two nations managed to defuse bilateral tensions over Russia. Otherwise, broader-picture developments remain under scrutiny, with Fed & ECB chiefs due to speak today.
• SAGB yields are little changed on the day, with the curve flattening at the margin. South Africa's 10-year breakeven inflation rate climbed to 6.75%. On the commodity front, the BCOM Index has ticked higher after a sharp decline over the past couple of days, but precious metals continue to soften.
• South Africa's September mining data will be out shortly (09:30GMT/11:30SAST). Manufacturing production will cross the wires later in the day (11:00GMT/13:00SAST).