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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 -0.16% lower this morning, retracing some of yesterday's upside following US industrial production that precipitated a sharp rise in the USD – hurting EMFX in the process.
- The cross rose +1.77% in yesterday's session, breaching the 15.50 handle with ZAR's high-beta nature making it a magnet for risk-off.
- CPI data will be the key focal point this morning ahead of a tightly contested SARB meeting tomorrow.
- Here, we see the SARB keeping its policy rate on hold, given broadly muted domestic demand and a largely contained medium-term inflation outlook.
- However, risks to a +25bp hike are considerable. A notably firmer CPI print this morning above roughly 5.3% would be concerning, but anything less shouldn't see a major shift in the SARB's policy stance.
- Meanwhile a downside print would reinforce our base case and may see ZAR weaken as more participants price in a hold at this meeting.
- Intraday Sup1: 15.3914, Sup2: 15.2963, Res1: 15.1780, Res2: 15.6625
1x4 FRA-Jibar
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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