The latest headlines may be assisting the recovery for USDZAR at the margins – alongside the broader advance for the greenback on Trump’s latest comments regarding reciprocal tariffs – with the pair almost back to flat on the session amid further signs of discontent between South African and President Trump’s administration.
As a reminder, Trump passed an Executive Order earlier in the week cutting aid to South Africa, potentially in a bid to punish the nation for adopting a new land-expropriation law, which he sees as race-based discrimination.
The ANC say the law will help to achieve its land-redistribution goals but it has attracted criticism from within the GNU. Indeed, the DA said Monday it is challenging the Expropriation Act in the Western Cape High Court, claiming it is unconstitutional.
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The NFIB Small Business Optimism index rose to the highest level since October 2018 in December, up 3.4 points at 105.1. The improvement in optimism appears to be largely driven by the November election result (we saw a similar surge in December 2016 after Donald Trump's first election as president). Of note, "the net percent of owners expecting the economy to improve rose 16 points from November to a net 52% (seasonally adjusted), the highest since the fourth quarter of 1983."
(MNI) London - Chinese state media reporting on a call between President Xi Jinping and European Council President Antonio Costa. On the call, Xi told Costa "China and Europe are partners [and] have no fundamental conflicts of interest or geopolitical disputes." Xi: "China has confidence in the EU, [and] hopes the EU can become a partner that China can trust."