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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.
SOUTH AFRICA
- USD/ZAR trades +0.08% higher this morning, tracking early price action in the BBDXY. The cross continued to fall on Friday in line with a softer USD – falling just short of testing the 15.00 handle.
- PBoC support, higher CPI and improved terms of trade supported ZAR last week as we head towards the SARB meeting on Thursday. Markets are broadly expecting a +25bp hike to keep with the MPCs plans of gradual normalization in line with global tightening pressures.
- 1x4 FRA-Jibar3m spreads stand at +31.8bp this week ahead of PPI data – expected to rise to 10.2% y/y in December owing to higher oil prices.
- Markets expect the SARB to deliver a higher average CPI forecast for 2022, rising sharply from 4.4% to 5.0-5.3%.
- However, most see December’s figure as a tentative peak in headline at 5.9% y/y.
- Wednesday’s FOMC meeting will be the big-ticket item to consider as markets expect Powell to guide towards a +25bp march hike.
- Intraday Sup1: 15.0671, Sup2: 14.9599, Res1: 15.2660 Res2:15.3532
1x4 FRA-Jibar3m
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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