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Rand Leads Gains In EMEA FX Space

ZAR

Spot USD/ZAR has come under modest pressure and last deals at 18.8627, losing altitude for the second consecutive day. A decline past Feb 2 low of 18.5578 would support the bearish case. On the topside, bulls look for a rebound above Jan 22 high of 19.2180.

  • SAGB yields have been on the rise this month, with market participants preparing for Finance Minister Godongwana's budget on February 21. Bloomberg reported yesterday that local bonds were "among the worst performing of emerging market sovereigns" with investors worried about the country's fiscal position. That being said, yields have eased off a tad this morning, with the curve flattening at the margin, while 10-year breakeven inflation rate has edged lower to 6.47%.
  • The BBG Commodity Index has added 0.2% and the precious metals subindex is 0.4% better off.
  • The Eskom situation remains under scrutiny, with the utility alternating between Stage 3 and Stage 4 loadshedding.
  • South Africa's December mining output data will be published at 09:30GMT/11:30SAST.

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