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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.
ZAR
The Rand is the worst performer in the EMEA space owing to its high-beta status, with plenty of risk ahead. The global economic calendar features a number of central bank decisions, South Africa will publish key CPI data, while the Phala Phala saga will remain front and centre amid a parliamentary debate on the matter and the ANC's national elective conference.
- The deepening energy crisis exposes the Rand to further losses, with the energy utility announcing Stage 5 load-shedding until further notice, despite earlier plans to de-escalate power outages. The City of Johannesburg asked for a three-day exemption from blackouts to stabilise electricity supply.
- USD/ZAR implied volatilities are elevated, with one-week tenor last seen at 21.24%. One-month implied volatility has now bounced off levels printed after it unwound Phala Phala gains. Overnight implied vol has surged towards recent highs.
- Spot USD/ZAR deals at ZAR17.4635, up ~1,090 pips on the session, with familiar technical levels still in play. The pair gains for the second consecutive trading day after charting a Doji candlestick on Dec 8.
Fig. 1: USD/ZAR Overnight vs. 1-Week Implied Volatilities
Source: MNI - Market News/Bloomberg
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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