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USD/ZAR Dials in on Political Risks, CPI After Taking out 14.50

SOUTH AFRICA
  • USD/ZAR continues to trade heavy at the open after a strong close to the week.
  • Weaker greenback and relatively upbeat commodities supporting ZAR upside: gold -0.32%, Platinum +1.77%.
  • Focus this week on local politics and CPI (17 Feb), as the NEC 'step aside' resolution risks causing major unrest in the ANC, exacerbating factional splits and moves to oust/undermine Ramaphosa as SG Magahule faces trial (19 Feb).
  • Could see more volatility enter the mix for ZAR, which has been rising the risk-on wave nicely, now past 14.50 into a new swing low vs the $.
  • Sup1: 14.4496, Sup2: 14.2766
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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