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Rand Rangebound, Precious Metals Tad Softer

ZAR

Spot USD/ZAR has been confined to a tight range this morning, with global and local headline flow providing little in the way of notable catalysts. The pair last deals at 18.7701, as bears looking for renewed losses, with Mar 13 low of 18.5066 and Dec 29 low of 18.2550 in sight. On the flip side, bulls look for a recovery towards Feb 23 high of 19.3899.

  • The commodity complex is slightly firmer today, with the BCOM Index rising 0.5% to refresh its cyclical highs. However, the precious metals subindex has shed 0.3% as gold trades $3.7/oz. lower on the session.
  • SAGBs remain a tad softer, despite erasing some of their initial losses. South Africa's 10-year breakeven inflation rate has extended its move higher and last sits at 6.73% after printing fresh multi-month highs at 6.75%.
  • Eskom implements Stage 2 power cuts until further notice due to unexpected outages of a couple of generating units and the increase of planned maintenance.

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