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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 +0.09% higher this morning, mirroring early price action in the BBDXY.
- The cross retraced back above the 16.00 handle yesterday amid softer global risk conditions and continued selling pressure in US equities on stagflation fears.
- Yesterday’s flat CPI print has seen 1X4 FRA-Jiba3m spreads dip slightly to +40bp ahead of the SARB decision today, which is set to be a close call.
- Delivery of the +50bp base case would provide marginal support to ZAR, while a +25bp hike would likely lead to a decent bout of selling pressure and more sustained ZAR weakness as markets trim tightening expectations further out.
- Markets will be looking for a more hawkish panel split and revisions to medium-term inflation forecasts for clues on the July meeting and beyond.
- Intraday Sup1: 15.8748, Sup2: 15.7331, Res1: 16.1331, Res2: 16.2706, Res3: 16.3663
1x4 FRA-Jiba3m spread
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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