Rand On Front Foot As First Parliament Sitting Gets Underway

Spot USD/ZAR resumes losses and last deals at 18.3378, around 950 pips lower on the session, with all eyes on South African parliament, which holds its first sitting after the election. From a technical standpoint, a breach of May 21 low of 18.0290 would be a welcome development for bears, while bulls look for a recovery towards the round figure/Jun 6 high of 19.0000/54.

• SAGB yields sit a tad lower across the curve, with 10-year breakeven inflation rate last seen at 6.36% after hitting its lowest levels in almost for months. The aggregate BCOM Index is marginally softer but precious metals are a tad firmer, with gold trading ~$12.7/oz. higher as we type.
• Chief Justice Raymond Zondo presides over the swearing-in ceremony in the National Assembly. Once all MPs are sworn in, the legislature will proceed to electing the new Speaker and President, with market participants awaiting the details of the new ruling coalition. The event can be watched live under this link.