ZAR: Rand Appreciates, S. Africa's Whole Economy PMI Improves
Jun-04 08:46
Spot USD/ZAR trades at 17.7897, down around 700 pips on the day, with bears looking for a dip through May 29 low of 17.7565 before targeting Dec 12, 2024 low of 17.6191. A return above 18.0 would expose the 50-EMA at 18.2570.
- SAGB yields have faltered across the curve. South Africa's 5-year breakeven inflation rate has ticked lower to 3.99% and the 10-year rate has declined to 4.97%, the lowest point in four years.
- The composite BBG Commodity Index and the precious metals subindex have added 0.1% each. Gold trades marginally higher, ~$3.9/oz. better off.
- The SARB doubled down on inflation target revision talk, with David Fowkes and Chris Loewald pointing to ongoing talks with the Treasury and a historic opportunity to finalise the process.
- S&P Global PMI for the whole economy improved to 50.8 in May from the breakeven 50.0 level registered in April, adding to 'signs of a strong 2nd-quarter performance across the private sector economy.' In addition, 'input price inflation softened in May and was considerably weaker than its trend pace.'
- The Bureau for Economic Research will publish Q2 consumer confidence data at 11:00BST/12:00SAST.
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EGB OPTIONS: Large Bund Condor
May-05 08:25
RXM5 132.00/133.50/135.00/136.50c condor, sold at 24.5 in 10k.
JPY: Testing high against the EUR and the Pound
May-05 08:22
- Worth keeping an eye on the Yen (nothing fast nor big), testing session high against the Pound and the EUR.
- The Dollar and the AUD are still lagging, but price action should still be somewhat limited with the Focus on the Fed this Week.
- Small support in USDJPY is seen towards 143.73 (Friday's low) initially, but did trade as low as 142.88 last Thursday.
FOREX: FX OPTION EXPIRY
May-05 08:14
Of note:
EURUSD 1.72b at 1.1300 (could act as magnet).
EURGBP ~1bn at 0.8525.
USDCAD 2.66bn at 1.3865/1.3870 (a bit far).
USDCNY 1.51bn at 7.3000 (tue).
EURUSD 3bn at 1.1390/1.1400 (thu).
USDJPY 1.4bn at 143.00 (thu).
EURUSD 1.3bn at 1.1300 (fri).
USDJPY 1.8bn at 145.00 (fri).
- EURUSD: 1.1285 (1.13bn), 1.1300 (1.72bn).
- EURGBP: 0.8525 (900mln).
- USDJPY: 144.00 (335mln).
- USDCAD: 1.3865 (1.02bn), 1.3870 (1.64bn).
- AUDUSD: 0.6500 (489mln).
