April 25, 2024 13:15 GMT
Rand Remains Top EMEA Currency Despite Recovery in Greenback
ZAR
- The recovery in the greenback following the strong core PCE and lower-than-expected US IJC figures has led to moderate weakness across EM FX. Resultantly, USDZAR has recovered from its daily low of 18.92 to last deal at around 19.10, though the pair still sits 0.65% lower on the day overall with the rand still comfortably the top performer in the EMEA space.
- The South African currency extended gains earlier in the session, with above-consensus PPI data (albeit by narrow margins) conducive to further appreciation given the SARB's hawkish bias was confirmed in its latest Monetary Policy Review. However, for now the move lower appears to be a correction from a technical standpoint, with a break of key support at 18.4131, the Apr 9 low, needed to a bearish theme. Initial firm short-term support lies at 18.9077, the 50-day EMA.
- Sustained weakness in the Japanese yen combined with rand outperformance earlier in the session resulted in ZARJPY piercing above the 8.2000 handle. A break of 8.2406, the Apr 09 high, would place the cross at its highest since November 2023.
177 words