Key points:

• SA’s financial markets remained stable this week, with the rand and bonds showing little reaction to the release of Budget 3.0 and President Ramaphosa’s meeting with US President Trump.

• While the Budget represented more of the same, implementation is key to achieving fiscal sustainability. The ANC, now governing in a coalition, may face performance pressure from GNU partners, potentially improving implementation.

• Ramaphosa’s meeting with Trump produced a pledge to strengthen trade and investment, though details were scarce, leaving questions about the future of strained US-SA relations.

• Globally, a sharp drop in the USD, driven by Trump’s tax bill and fiscal concerns, has supported emerging market currencies, including the ZAR.