The ZAR experienced much of the same price action than yesterday, firming during the course of the day. The local unit, which is more than 3.5% stronger since the start of the month, is the strongest EM at the moment and ran into some strong resistance around the 14.66 for the second day running. EUR and GBP were both fairly flat while commodities are weaker as risk on sentiment continues. Local manufacturing output was down 1.1% YoY in July while Moody's commented that the likelihood of a downgrade to junk status to be low at the moment. The rating agency also cut their expectations of growth by 0.7% in 2019, down 0.3% and stated that fixing the troubled power utility Eskom will take time.
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