MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: PBOC Net Injects CNY57 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1315 Fri; -0.52% Y/Y

CHINA PBOC CONDUCTS CNY59 BILLION VIA 7-DAY REVERSE REPOS FRI

Intermediate PPI Deflation Continues To Fade in June

MNI: GERMANY JUNE PPI  +0.2 % M/M (+0.1% FCAST, 0.0% PRIOR)

Disappointing data but no market reaction

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

Rand Ticks Higher Still Ahead Of Elections & SARB MonPol Decision

ZAR
BulletEM BulletEmerging Market NewsHomepage

Spot USD/ZAR edges lower for the third consecutive day as last week's corrective rebound ran out of steam. The pair last deals at 18.3372, around 250 pips lower on the session, with bears looking for losses past May 21 low/round figure of 18.0290/18.0000. Conversely, bulls keep an eye on the 50-EMA at 18.6020.

  • SAGB yields sit marginally higher across the curve, with 10-year breakeven inflation rate last seen at 6.78%. The aggregate BBG Commodity Index has strengthened (+0.9%), with the precious metals subindex up 1.3% as we type.
  • This week brings two major even risks for the rand, that is the national election (May 29) and the SARB rate decision (May 30).
    • The ruling ANC may lose its parliamentary majority but there is fundamental uncertainty around the gap to the 50% threshold and the probability of various post-election coalition scenarios.
    • The SARB is expected to keep interest rates unchanged as inflation is yet to return to the +4.5% Y/Y target mid-point while the central bank continues to reaffirm its hawkish credentials.
167 words

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.

Spot USD/ZAR edges lower for the third consecutive day as last week's corrective rebound ran out of steam. The pair last deals at 18.3372, around 250 pips lower on the session, with bears looking for losses past May 21 low/round figure of 18.0290/18.0000. Conversely, bulls keep an eye on the 50-EMA at 18.6020.

  • SAGB yields sit marginally higher across the curve, with 10-year breakeven inflation rate last seen at 6.78%. The aggregate BBG Commodity Index has strengthened (+0.9%), with the precious metals subindex up 1.3% as we type.
  • This week brings two major even risks for the rand, that is the national election (May 29) and the SARB rate decision (May 30).
    • The ruling ANC may lose its parliamentary majority but there is fundamental uncertainty around the gap to the 50% threshold and the probability of various post-election coalition scenarios.
    • The SARB is expected to keep interest rates unchanged as inflation is yet to return to the +4.5% Y/Y target mid-point while the central bank continues to reaffirm its hawkish credentials.