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Rand Tad Softer, SARB MPR Awaited

ZAR

Spot USD/ZAR operates slightly above neutral levels, last at 18.8069. A break above Oct 6 high of 19.6399 would support the bullish case, while bears eye Sep 20 low of 18.6825 for initial support.

  • SAGB yields have inched higher, with South Africa's 10-year breakeven inflation rate rising to 7.06%. The composite BBG Commodity Index has edged lower, while the precious metals subindex little changed on the day.
  • Local reports suggest that there is growing backlash from ruling ANC party leadership against Public Enterprises Minister Pravin Gordhan's handling of SOEs. Separately, Electricity Minister Kgosientsho Ramokgopa reaffirmed his optimism about the outlook for the energy situation.
  • South Africa's Automobile Association (AA) suggested that fuel prices are set to drop in November, giving consumers some reprieve. Their forecast is based on unaudited mid-month data from the Central Energy Fund (CEF).
  • The SARB will release its semiannual Monetary Policy Review this afternoon.

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