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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.
SOUTH AFRICA
- USD/ZAR trades +0.21% higher this morning, tracking early upside in the BBDXY as mixed risk sentiment filters through from the APAC session.
- The cross rose +0.28% in yesterday's session, broadly ignoring improved risk sentiment in the afternoon and broad USD weakness to press towards 15.20.
- This suggests some pre-elections risk aversion and concerns over acute energy security issues at Eskom, which look set to remain over the summer period.
- One factor that slipped somewhat under the radar was FinMin Godongwana laying down the gauntlet to unions by assuming no rise in the public sector wage bill in the 2022-23 year – sending a firm message on his fiscal consolidation objectives.
- Nevertheless, ZAR was also weighed down yesterday by higher PPI data which precipitated a tighter stance on monetary policy expectations from markets with FRA-Jibar spreads rising from +41 to +60bp following the print.
- Today's focus will be on 15.2524-15.2949 resistance to see if the recent upside momentum stalls out or looks to move through the level.
- Intraday Sup1: 15.0546, Sup2: 14.9847, Res1: 15.2524, Res2: 15.2949
3x6 FRA-Jibar Spreads
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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