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USD/ZAR Eyes 14.20 Ahead of PPI Data, Bearish Engulfing Candle Emerges

SOUTH AFRICA
  • USD/ZAR pulls back from the 14.20 handle on some early USD strength to claw back some of yesterday's post-FOMC weakness.
  • The cross erased the Freedom Day holiday move higher, with buyers emerging at 14.40 to form a large bearish engulfing candle on the daily chart.
  • Markets gave little heed to Ramaphosa's state capture testimony with questioning lacking impact and answers being mostly vague, which may resume today.
  • Accommodative posturing from the Fed should continue to buoy risk markets, with ZAR a strong beneficiary of risk-on sentiment given wide real yield/carry differentials.
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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