RPT-MNI BOC WATCH: More Gradual Approach Seen After 50BP Cut

MNI BRIEF: Beijing To Protect Firms From U.S. Bill - MOFCOM

MNI: SNB CUTS KEY POLICY RATE BY 50 BPS TO 0.5%

MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Rand Oscillates Around Neutral Levels After SARB-Inspired Rally

ZAR

USD/ZAR came under pressure in reaction to the SARB's larger-than-expected rate hike yesterday. The pair crossed below Mar 23 low/trendline support/50-DMA and completed a multiple head-and-shoulders pattern. When this is being typed, it changes hands at ZAR17.8099, down ~110 pips on the day.

  • From a technical point of view, bears look for further losses towards Feb 2 low of ZAR16.9317. Conversely, bulls keep an eye on Mar 8 high of ZAR18.7192.
  • The SARB yesterday raised interest rates by an expectation-busting 50bp on the back of inflation concerns.
  • FRA 2x5 vs. 3-month JIBAR spread widened after yesterday's SARB rate decision and currently sits at 62bp.
  • Local-currency bonds have firmed across the curve, with yields last seen 2.3-3.6bp lower. South Africa's 10-year breakeven inflation rate has eased to 6.22%.
  • The composite BBG Composite Index has shed ~0.5%, with the precious metals index sitting ~0.3% lower on the session.
  • South Africa's February trade balance will hit the wires this afternoon.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.