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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
- USD/ZAR trades +0.16% higher this morning, clawing back some of yesterday’s turn lower as markets returned after a long weekend.
- The cross fell-2.13% to form a bearish engulfing candle on the daily chart ahead of today’s FOMC meeting.
- With limited data on the agenda, pre-Fed sentiment will be the key driver of price action today as markets eye Powell’s statement and presser.
- Rates futures show a decidedly hawkish picture with roughly 105bp priced in by July – implying expectations for a >50bp hike among some participants.
- For the SARB, 1x4 FRA-Jiba3m spreads reflect increased appetite for a 50bp hike in May at +44bp & +99bp in the 3x6 FRA – with inflation and Fed pressures forcing the bank to accelerate its tightening cycle.
- The cross will be vulnerable to swings in risk sentiment today, given ZAR’s high beta status.
- Here a dovish surprise could see the cross continue its push lower, while a hawkish impulse with likely deliver the opposite.
- Intraday Sup1: 15.6805, Sup2: 15.5803. Sup3: 15.5310, Res1: 15.8758, Res2: 16.005
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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