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Analysts Warn of Risks to 1Q21 Growth; Commodities Under Pressure As USD Bites Back

SOUTH AFRICA
  • USD/ZAR tracks higher, despite a firmer CNY now holding below 6.50.
  • Spot now challenging last week's high at 7.47, with next resistance coming in at the 15.65-15.70 resistance zone.
  • Bond outflows remain a key driver for ZAR. Manufacturing production and retail sales in focus this week, with analysts warning about risks to a -3.3% 1Q21 GDP contraction.
  • 5y CDS & 1m implied volatility ticking up, while commodities take a bit of a hit (gold -0.11%, platinum -1.95%) - weighing on ZAR.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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