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FRA's Show Signs Of Brewing 2021 Rate Cut Expectations; PPI In Focus

SOUTH AFRICA
  • USD/ZAR continues to track broad USD risk sentiment and CNY fixings
  • still holding above 15.00 handle.
  • PPI & NFPs today at 7:30am & 8am GMT.
  • PPI expected to rise YoY at 2.8% vs 2.7% prior & decline MoM at -0.2% vs 0.4% exp.
  • Upside PPI surprise would further reinforce SARB hold bias, but downside surprises will hold asymmetric impact
  • FRA's showing possible signs of easing expectations in Jan/March meetings.
  • Sell side remains optimistic on ZAR assets with USD/ZAR selling pressure compressing moves higher.
  • 14.9120 - 14.8907 remains the gateway to further downside towards 14.77.
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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