Free Trial

USD/ZAR Brushes off Third Wave Risks, Moves Below 13.90

SOUTH AFRICA
  • USD/ZAR opens lower on the back of further USD weakness at the start of the session.
  • Risk sentiment seems to have recovered substantially, given firmer footing in US equities. APAC indices off to a great start (CSI300 +3%) which should also buoy the Top40.
  • Virus concerns becoming louder in SA as experts warn of a shift to tighter restrictions.
  • Markets will be eyeing an announcement from the Coronavirus Council meeting today for a tightening in restrictions.
  • Despite somewhat lower real yields/carry following May's higher inflation print, ZAR remains a key go to in the hunt for yield.
  • Sell side has noted an uptick in ZAR real money inflows on the break below 14.00, signaling increased optimism in SA markets.
  • Commodities providing marginal support: gold +0.10%, platinum +0.14%.
  • Intraday Sup1: 13.8140, Sup2: 13.7190, Res1: 13.8931, Res2: 13.9532
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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.