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ZAR: Rand Stays Close To Cyclical Highs, News On Cabinet Line-Up Awaited

ZAR

Spot USD/ZAR hovers just above its recent cyclical lows, looking for fresh catalysts with cabinet negotiations underway. The Daily Maverick reported that President Cyril Ramaphosa and Democratic Alliance leader John Steenhuisen will meet today to discuss the allocation of portfolios and the cabinet line-up may be unveiled as soon as on Sunday or early next week. That being said, Ramaphosa does not have any formal deadline for announcing the cabinet, which gives him some room for manoeuvre.

  • With USD/ZAR last trading at 17.9716, just shy of neutral levels, bears look for losses towards Jul 27, 2023 low of 17.4193. Conversely, bulls see the 50-EMA at 18.5121 as their initial target.
  • SAGB yields have retraced their initial upticks and now sit a tad below neutral levels, with South Africa's 5-year & 10-year breakeven rates (last at 6.09% and 5.01% respectively) operating near recent multi-month lows.
  • The composite BBG Commodity Index has shed 0.3%, the precious metals subindex is little changed on the day.

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