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USD/ZAR Choppy as 1Y Basis Swaps Trade Near Prior Highs

SOUTH AFRICA
  • USD/ZAR remains choppy after pulling back below the top side of the 22 Dec range (14.6783 - 14.5610) on a sagging Greenback, tentative bond inflows and firmer commodities (platinum +0.98%).
  • Limited local catalysts (other than the spread of the new Covid variant) leaves the cross at the mercy of global/USD factors.
  • Mostly rangebound until new drivers enter.
  • 1Y SA Basis Swaps (cost to short ZAR) trading near previous highs around 94.00-100, 1m implied volatility also ticking up.
  • SUP1: 14.5610, SUP2: 14.5170, RES1: 14.7691, RES2: 14.8275.
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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