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Strong Commodities Buoy ZAR; Restrictions in Focus

SOUTH AFRICA
  • USD/ZAR opens lower in line with its high-beta peers, supported by a softer greenback and an aggressive commodities bid driving silver, gold (+0.83%) and platinum (3.79%) higher.
  • Focus this week will be on restrictions on Wednesday as Govt comes under pressure to ease, likely to support ZAR optimism on lower risks to the recovery.
  • Although the first set of vaccines have arrives, SA remains far behind the curve in its rollout efforts and still at risk of a third wave which the SARB has said it will keep its powder dry for.
  • Spot remains pegged above the 15.00 handle, but may look to drift below as real money flows return on improved risk sentiment.
  • Friday's low at Sup1: 15.9636 should act as the bear trigger to the next leg towards Sup2: 14.8685. Res1: 14.1544, Res2: 15.2116
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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