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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 +1.68% higher this morning on the back Western sanctions on the CBR’s ability to use its foreign reserves held abroad (~40% of $630bn) forcing the bank to hike interest rates to 20% from 9.50% and impose 80% mandatory FX sales for local firms.
- Oil prices have surged +4.25% this morning, adding risks for SA on the inflation front as a net importer. 9x12 FRA-Jibar3m spreads have risen from +142-170bp since last Wednesday as the crisis has escalated.
- USD/ZAR is pressuring its 100 & 50dmas at 15.43, with a breakout higher opening 15.75-16.00 to the topside. Momentum has also shifted to bullish territory on the RSI, having crossed the 50 mark to the upside.
- A close above 15.50 would be a bullish development. USD/ZAR 1m risk reversals have also ticked higher – moving back to August 2021 levels.
- Intraday Sup1: 13.3663, Sup2: 15.2633, Res1: 15.49-2, Res2: 15.6032
USD/ZAR 1m RRs
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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