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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 -0.02% lower this morning, tracking early price action in USD/CNH as mixed sentiment filters through from APAC.
- Broad-based risk-on drove yesterday’s test of the 15.80 handle, but failed to close below the level.
- Focus today will be on the state capture report and whether Democracy in Action’s urgent interdict stops the report from reaching the president – although the final draft is only expected to reach Ramaphosa by the End of Feb and his findings delivered to parliament by June.
- Outside of this, ZAR should trade in line with global risk sentiment and US data this week as PMIs are the only notable local data points to consider.
- Weak growth, SARB policy, fiscal risks from grant/wage discussions, falling commodity prices and the ANC’s NEC are some key factors to consider for SA in 2022 and will be monitored closely throughout the year.
- Citi’s ZAR terms of trade index has also taken a leg lower after consolidating in Dec – which may reduce ZAR attractiveness somewhat.
- Price action is still underpinned by the 50dma at 15.68 and solid support around 15.50 in the near-term.
- Intraday Sup1: 15.8128, Sup2: 15.7657, Res1: 15.9366, Res2: 15.9881
Citi Terms of Trade
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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