Free Trial

Rand Struggles To Recover, CPI & SARB Decision Eyed Next Week

ZAR

Spot USD/ZAR consolidates yesterday's gains and last deals at 18.3975, up ~240 pips on the session. From a technical perspective, Nov 10 high of 18.8057 provides the initial bullish target. Bears look for a pullback towards the 18.00 mark and the 76.4% retracement of the Jul 27 - Oct 6 bull phase at 17.9434.

  • President Cyril Ramaphosa's office said that South Africa has completed an implementation plan that will help the country secure access to $8.8bn from the Just Energy Transition Partnership pact.
  • Continued talk of growing political momentum within South Africa behind the proposal to cut diplomatic ties with Israel raises the risk of renewed complications in Pretoria's relations with the US.
  • SAGBs have firmed across the curve, with 10-year breakeven inflation rate easing to a two-and-a-half-month low of 6.52%. The National Treasury holds a weekly auction of inflation-linked bonds today.
  • The BBG Commodity Index has stabilised after a 1.5% drop yesterday. The precious metals subindex has added just 0.1% in the wake of yesterday's 1.3% rally.
  • The focus in South Africa turns to next week's CPI data (Wednesday) and SARB rate decision (Thursday).

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.