SOUTH AFRICA: ANC SecGen Mbalula Digs In On Reform Agenda Despite US Pressure
Aug-07 06:25
- African National Congress (ANC) Secretary General Fikile Mbalula accused coalition partners from the Democratic Alliance (DA) of 'political mischief', alleging that their actions have provoked US punitive tariffs and sanction threats. Mbalula said that the ANC will press ahead with its transformative reform agenda, which includes policies such as BEE and the Expropriation Act, regardless of the backlash from the Trump administration.
- The 30% US tariff on South African goods have come into force. South Africa said it would continue negotiations with the US with the aim of reaching a 'mutually beneficial trade deal' while rolling out measures to cushion the blow to its exporters.
- Minister in the Presidency Khumbudzo Ntshavheni will brief the media on the outcomes of recent Cabinet meetings.
- The SARB's gross reserves rose to $69.16bn in July; net reserves were at $65.14bn.
- Electricity production/consumption data will be published at 12:00BST/13:00SAST.
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JPY: FX Exchange traded Option is trading for more
Jul-08 06:24
FX Exchange traded Option, New Position, looking for Yen strength, still trading in a few clips:
- JPYUSD (8th Aug) 63.00p, sold at 0.25 in 2k total now.
BUNDS: Supply are at the forefront Today
Jul-08 06:21
- A slightly better volume overnight session for Bund, the contract saw a tiny gap lower on the Overnight Open but this was closed.
- The surprised unchanged Rate from the RBA was worth a 12 ticks drop for Bund but the contract is back at pre RBA decision level.
- Near term risk is at the Immediate Yield of 2.671% which equated to 129.77 Yesterday.
- Further out would see 2.701%, also equated to 129.46 Yesterday. This latter level in Yield is May's high.
The resistance in Bund comes down to 130.51 50-day EMA. - US 10yr continues to probe 4.40% into the EGB Cash Open.
- There's no notable Data for Today, NY 1yr Inflation expectation is the only release, the main focus is on Supply Today.
- SUPPLY: Netherlands €2.25bn 2044 (equates to 30.2k Bund) could weigh, UK 2049 Linker (won't impact Gilt), German €5bn Bobl is heavy (equates to 46.6k Bobl) will weigh, Austria 2035, 2040 (won't impact Bund), US Sells $58bn of 3yr Notes.
- SYNDICATION: EU new 7yr Dec-32, and tap of the 3.75% Oct-45.
- SPEAKERS: ECB Nagel.
BRENT TECHS: (U5) Gains Appear Corrective
Jul-08 06:21
- RES 4: $85.00 - Round number resistance
- RES 3: $81.99 - 2.764 proj of the Apr 9 - 23 - May 5 price swing
- RES 2: $80.72 - 2.618 proj of the Apr 9 - 23 - May 5 price swing
- RES 1: $72.66/79.40 - 50.0% of the Jun 23-30 range / High Jun 23
- PRICE: $69.40 @ 07:10 BST Jul 8
- SUP 1: $65.92 - Low Jun 30
- SUP 2: $61.39 - Low May 30
- SUP 3: $58.00 - Low May 5
- SUP 4: $57.70 - Low Apr 9 and a key support
Short-term conditions in Brent futures are unchanged, they remain bearish and gains are considered corrective. The contract traded sharply lower on Jun 23, and this sell-off highlights a bearish theme. The 50-day EMA has been breached and note too that $66.17, 61.8% of the May 5 - Jun 23 bull leg, has been pierced. A continuation lower would expose $61.39, the May 30 low. Initial resistance to watch is $72.66, a Fibonacci retracement point.
