MNI BRIEF: ECB Cut On Disinflationary Process Trust-Centeno

CANADA MAY JOBS +26.7K VS FORECAST +20K, PRIOR +90.4K

MNI China Daily Summary: Friday, June 7

MNI BRIEF: Mexico Inflation 4.69% In May, Below Consensus

MNI BRIEF: China May Forex Reserves Rise On Weakened Dollar

MNI BRIEF: China Service Trade Grows Rapidly, Deficit Expands

MNI: US APR CONSUMER CREDIT +$6.4B

MNI: BAKER HUGHES US RIG COUNT 594; OIL RIGS 492; GAS RIGS 98

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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

USD/ZAR: Rising CPI Unlikely to Impact Accommodative SARB Policy

SOUTH AFRICA
  • USD/ZAR trades lower at the start of the session, exerting pressure on the 14.00 level once again aided by early USD selling.
  • While phase 2 of the vaccines rollout has begun, it has predictably been slower than expected in its early days.
  • However, the health department is looking to expand its rollout capacity substantially next week, which will be key in gauging whether the ambitious vaccination targets can be met.
  • Core focus today is on local CPI, Retail sales and the FOMC minutes.
  • CPI is expected to notch up, but remain below the midpoint of the range – adding no threat to the SARB's "extremely accommodative" policy stance.
  • Although unexpected, a higher print above the 4.5% y/y level (SARB range midpoint) would likely see a more hawkish market reaction as potential rate hike expectations are brought forward.
  • However, with the balance of risks to inflation mostly to the downside, the more likely scenario is a flat print in line with expectations or marginally lower.
  • Intraday Sup1: 13.9844, Sup2: 13.952, Res1: 14.0768, Res2: 14.1536
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage

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.