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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.
SOUTH AFRICA
- USD/ZAR trades -0.05% lower this morning, treading water amid mixed risk conditions following reports of a potential Putin-Biden Summit.
- Broad-based risk-off saw the cross pull back sharply from the 200dma on Friday to form a bullish engulfing candle on the daily chart.
- Gains in commodities supported ZAR last week, but the focus will be on the budget this week with deficit forecasts pointing to a more benign medium-term trajectory owing to commodity super-cycle tax revenues in 2021.
- Markets will be looking for continuation in FinMin Godonwana’s fiscal consolidation approach as the tax windfall is used to trim debt servicing costs and fund an extension of the SRD grant framework without resorting to tax increases. This more positive outlook has been supporting demand for LT bonds in the run-up to the meeting.
- Nevertheless, ZAR should remain vulnerable to global risk conditions should tensions in Ukraine deteriorate further with troops in Belarus staying at their post, despite prior promises from Putin for withdrawals.
- Intraday Sup1: 15.0603, Sup2: 14.9741, Res1: 15.2155, Res2: 15.2633
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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.
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