Rand Slightly Weaker, SARB Comments Under Scrutiny

USD/ZAR has edged higher while staying within the confines of a familiar range. The pair last deals at 19.0980, around 550 pips higher on the session. A clearance of Oct 6 high of 19.6399 would confirm that bullish momentum is strengthening. Bears look for a dip through Sep 20 low of 19.6825.

• SARB Dep Gov Tshazibana refused to confirm that the tightening cycle has ended, noting that there are too many risks to the inflation outlook to do so. This comes amid speculation that the SARB could shift in a more hawkish direction, with relatively dovish policymaker Kuben Naidoo planning to step down.
• In his testimony to parliament yesterday, Electricity Minister Ramokgopa insisted that the performance of Eskom's generation fleet is steadily improving.
• The commodity complex is stable this morning, while the precious metals subindex has edged 0.3% lower.