Free Trial
FED

Household Well-Being Survey 2021

BONDS

EGB/Gilt - Gilt underperforms

OIL

Russian Chartering Increases

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Markets Eye +50bp SARB Hike as ZAR Weakens 10.31% Since the Last Meeting

SOUTH AFRICA
  • USD/ZAR trades -0.45% lower this morning, tracking early weakness in the BBDXY. The cross is probing 16.00 support after failing three times to break above Monday’s high at 16.2706.
  • Broad-based risk off, CNH weakness and selling pressure in US equities has been keeping high-beta ZAR on the backfoot this week, with softer mining data also weighing on the outlook somewhat.
  • For today’s session, the cross should trade in line with global risk sentiment as the focus shifts to next week.
  • The SARB is broadly expected to deliver a +50bp hike to 4.75% to tame broadening inflation pressures and avoid falling behind the Fed.
  • Since the last meeting, ZAR has depreciated by 10.31% vs the greenback and will risk further weakness if the MPC delivers too dovishly on its forward guidance.
  • 1x4 FRA-Jiba3m spreads have remained stable in the +45-48bp range since 5 May, making anything short of a +50bp hike a dovish surprise for markets.
  • Intraday Sup1: 15.9593, Sup2: 15.7965, Res1: 16.1331, Res2: 16.2064
164 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • USD/ZAR trades -0.45% lower this morning, tracking early weakness in the BBDXY. The cross is probing 16.00 support after failing three times to break above Monday’s high at 16.2706.
  • Broad-based risk off, CNH weakness and selling pressure in US equities has been keeping high-beta ZAR on the backfoot this week, with softer mining data also weighing on the outlook somewhat.
  • For today’s session, the cross should trade in line with global risk sentiment as the focus shifts to next week.
  • The SARB is broadly expected to deliver a +50bp hike to 4.75% to tame broadening inflation pressures and avoid falling behind the Fed.
  • Since the last meeting, ZAR has depreciated by 10.31% vs the greenback and will risk further weakness if the MPC delivers too dovishly on its forward guidance.
  • 1x4 FRA-Jiba3m spreads have remained stable in the +45-48bp range since 5 May, making anything short of a +50bp hike a dovish surprise for markets.
  • Intraday Sup1: 15.9593, Sup2: 15.7965, Res1: 16.1331, Res2: 16.2064