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USD/ZAR Back Below 14.50, ANC Political Rumblings Grow Louder

SOUTH AFRICA
  • USD/ZAR stages a firm reversal off the topside of the bear channel flagged in yesterday's session to make a new swing low post-US CPI.
  • Softness in the greenback bolstering risk sentiment across EM with APAC starting on the front foot. Commodities clawing back some gains: gold +0.11%, platinum +1.49%.
  • ZAR leading CEMEA FX, but positive sentiment in Russia RE military tensions and firm oil prices may see RUB overtake.
  • Political rumblings getting louder as ANC SG Magashule becomes more desperate towards the end of his 30-day grace period with reports of a revolt against the step-aside rule emerging at the committee level.
  • The magnitude of this revolt remains to be seen, with Magahsule's prior attempts to sway the ANC (Public protector vote) having failed.
  • Retail sales data expected to show an improvement y/y & m/m today, providing ZAR with some support.
  • As noted yesterday, sell-side remains focused on 14.3966 support, continued risk on and $ weakness likely to bolster ZAR.
  • Intraday Sup1: 14.3966, Sup2: 14.2714, Res1: 14.5229, Res2: 14.5775
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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