Trial now
US TSY FUTURES

BLOCK, 10Y Buy

USDJPY TECHS

Trend Conditions Remain Bullish

FED

Reverse Repo Operation

FOREX

US Outperformance Keeps Sending EURUSD Lower

US TSY FUTURES

New Bond Highs

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

  • USD/ZAR trades +0.35% higher this morning, broadly tracking buying pressure on the BBDXY in early trading as mixed sentiment filters through from APAC.
  • The cross ended yesterday's session -0.36% lower, with price action finding support at the 200dma at 14.60 to form a third successive long candle wick to the downside as buyers stepped in at dynamic support from the moving averages.
  • Yesterday's SARB has been classified as cautiously dovish following minor adjustments to 2021 CPI at 4.3% vs 4.2% prior while 2023 & 2024 forecasts remain the same at 4.2% & 4.5% - reflecting broadly balanced medium-term pricing vectors.
  • As we expected, the decision was unanimous, but Kganyago guided cautiously towards short-term risks to food, fuel wage and producer inflation being to the upside.
  • The focus on medium-term disinflationary factors over short-term transitory pressures keeps out base case for unchanged rates out to 1Q22 intact, but will be watching for near-term risks to forecast revisions in October/November.
  • The cross is currently caught between the 200dma (14.56) and 61.8% Fib (14.88) looking for clearer directional triggers.
  • Intraday Sup1: 14.6978, Sup2: 14.6072, Res1: 14.8632, Res2: 14.9065