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USD Selling Gives USD/ZAR the Next Leg Lower Towards 14.2714

SOUTH AFRICA
  • USD/ZAR is roughly flat around the open, mirroring early price action in the BBDXY.
  • Broad based $-selling in yesterday's session helped the cross close a fraction below 14.3966 support (new 14-month low), possibly indicating more downside to come.
  • Talk of Cabinet reshuffles is getting louder as Ramaphosa tightens his grip on power, but exact timing remans elusive.
  • Shifts in SOE departmental management are also a risk factor to monitor which could slow and complicate Eskom restructuring/unbundling.
  • Additionally, Zuma has taken another step closer to arrest with his latest defiance of the ConCourt, locals will be watching the ConCourt's next steps closely.
  • Commodity markets remain supportive of ZAR this morning: gold +0.53%, platinum +0.65%.
  • Intraday Sup1: 14.3690, Sup2: 14.2714, Res1: 14.4716, Res2: 14.5229
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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