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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 has traded choppily throughout the week with price action fluctuating around the lower trendline of the bull channel pattern established in June 2021.
- USD strength has been a dominant theme this week with the Fed alluding to plans to stick with its expedited taper/rate hike timeline despite uncertainty coming from the Omicron variant.
- The sharp turnaround in equities following NFPs has also contributed to USD-side volatility this afternoon with ZAR’s high-beta nature making it vulnerable to intraday volatility.
- USD/ZAR has attempted to break this bull channel pattern three times this week but failed to close below the level.
- From a technical standpoint, a close below the trendline and 15.75 would potentially open up a move towards the 15.50-15.30 zone, while a failure to do so would likely see the current bull trend continue to the prior highs at 16.40-16.60.
- Momentum currently remains bullish set against a strong USD backdrop, with the cross well-supported by lateral and dynamic support below from the Aug/Sep highs and the 50/100dmas.
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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