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Political Risks Brewing as USD/ZAR Trades below 14.50

SOUTH AFRICA
  • USD/ZAR trading marginally lower this morning, following on from a positive APAC session, but has stalled slightly on a pick-up in $ buying.
  • Commodities have pulled back some early gains, but still in the green: gold +0.20%, platinum +0.48%.
  • Local political concerns expected to pick up this week ahead of Magashule's trial on Thursday and concerns about factionalism in the ANC.
  • Risk-on/off still a key price action driver, however. Having taken out 14.50, the broad downtrend remains intact with sell-side still comfortable fading rallies, provided global risk sentiment remains favourable.
  • Sup1: 14.4151, Sup2: 14.2766, Res1: 14.4578 Res2: 15.5126
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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