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USD/ZAR Heads Higher as Markets Become Wary of Risk Assets

SOUTH AFRICA
  • USD/ZAR trades +0.36% higher this morning, holding up relatively well against the spike in risk aversion reflected in global equity markets.
  • Choppy price action in the BBDXY is keeping the cross pegged below 15.2155 resistance, for now – but an acceleration in risk off and a safe-haven bid in the USD could see ZAR weakness ensue as the day evolves.
  • Focus is on whether Putin seeks to expand the DPR & LPR territories beyond the 30% they occupy for risk of a broadening conflict with Ukrainian military forces.
  • On the local front, markets prepare for tomorrow’s budget with the brighter fiscal outlook supporting cautious optimism.
  • However, economists remain concerned that without an uptick in growth, SA cannot hope to achieve a sustainable fiscal trajectory over the longer-term.
  • A move through 15.21 opens up 15.36-15.50 to the topside with the 100 & 50dmas above at 15.42-28.
  • Intraday Sup1: 15.1431, Sup2: 15.0603, Res1: 15.2663, Res2: 15.3663, Res3: 15.4435
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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