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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- The rand has had an impressive Q1, registering its best quarter in in 29 years and gaining ground across the board against the G10 FX complex.
- Surging terms of trade as a result of the Russia crisis and inflation fears have bolstered prices for key exports, while EU nations have suffered as a result of proximity to Russia. Last week’s hawkish SARB also accelerated the move lower.
- Real yields on SAGBs are the second widest in the EM space, providing the currency with buffers against USD strength alongside a decent current account surplus and improved fiscal outlook reflected in the Feb budget speech.
- GBP/ZAR trades at a key pivot point after breaking out of the June 2021-March2022 bull channel pattern, and has now retested the base of the pattern. Price action is currently in oversold territory, but a break below the 19.00 level may see more downside momentum towards the 18.50-18.40 zone.
- Alternatively, a failure to establish a downside breakout may see the cross return to resistance at 19.50 – 19.83.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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