Free Trial

Softer Greenback Allows USD/ZAR to Retest 16.00 Support

SOUTH AFRICA
  • USD/ZAR trades -0.55% lower this morning, tracking continued downside momentum in the BBDXY as the greenback fades off its high and the CNH recovers from Friday’s lows.
  • The cross pulled back from a fresh high at 16.3237 yesterday and is now probing the 16.00 handle with a lateral range now forming from 09 may.
  • Eskom load-shedding stepped up a notch yesterday, reminding markets of the brewing risks to economic activity from what is set to be one of the worst years on record for power stability.
  • This, combined with extensive strike action across multiple sectors over wages, makes for additional concerns on the growth front in 2022 as govt seeks to rein in the public sector wage bill.
  • US retail sales & industrial production data will be the key focus for today, followed by local CPI tomorrow ahead of the SARB meeting (50bp hike expected).
  • Intraday Sup1: 16.9593, Sup2: 16.8748, Res1: 16.1331, Res2: 16.2064
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

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.