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Rand Leads Gains In EMEA Space On Eve Of SARB MonPol Review

ZAR

The South African Rand takes the lead in EMEA space, with USD/ZAR lodging fresh two-month lows as above-forecast U.S. jobless claims have added pressure to the greenback. The pair keeps losing altitude after breaching trendline support drawn off Apr 13 low, with bears now looking to force their way through Sep 13 low of ZAR16.9818.

  • From a cross-asset perspective, the commodity backdrop remains mixed, with BBG Commodity Index last nearly 0.6% higher. Precious metals subindex is marginally firmer, while industrial metals are slightly softer. Meanwhile, benchmark FTSE/JSE Africa Top40 Index operates near session highs.
  • Worth noting that South Africa's bond market saw a sizeable inflow of foreign capital Tuesday. Offshore investors were net buyers of $113.32mn in local debt, the largest net daily inflow since mid-September. Still, the net result on a YtD basis is a $14.914bn outflow.
  • Reminder that the SARB will decide on interest rates tomorrow, after today's data showed that South Africa's October CPI data exceeded expectations.

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