DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USD/ZAR Back Below 200dma as Powell Downplays Inflation, Tapering Concerns

SOUTH AFRICA
  • USD/ZAR trades lower at the open today, tracking the BBDXY and USD/CNH lower as markets digest the FOMC outcomes.
  • Powell showed little concern about the inflation trajectory and pushed tapering expectations further towards the end of the year – resulting in a mostly dovish reaction in the USD.
  • While growth and employment assessments were improved, the focus was predominantly on tapering and inflation.
  • Markets will now look to the Jackson Hole meeting for further guidance from the Fed. Domestically, covid cases notched up by over 10k overnight as testing ramps back up and the effects of social unrest filter through into the numbers.
  • USD/ZAR is likely to trade in line with broad risk sentiment today which appears more favourable thus far this morning.
  • The cross pulled away from the 14.90-15.00 zone and back below the 200dma after making two consecutive bearish gravestone doji candles on the daily chart – next major support seen at 14.40 (38.2% fib)-14.50.
  • PPI data expected to ease slightly, adding to the disinflationary/dovish SARB narrative.
  • Commodities slightly firmer today: gold +0.61%, platinum +0.76%.
  • Intraday Sup1: 14.6577, Sup2: 14.5753, Res1: 14.7583, Res2: 14.8632
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage

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.