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USD/ZAR Moves Higher Following a Hawkish SARB

SOUTH AFRICA
  • USD/ZAR opens higher in line with EM peers and a weaker USD/CNY with APAC indices trading mostly in the red to close the week.
  • Commodities also taking a breather: gold -0.45%, platinum -2.06%.
  • SARB came out in line with our base case scenario, indicating little room for cuts in the absence of structural reforms, and looking through short-term shocks to longer-term trends of above forecast inflation.
  • Risk-off driving USD/ZAR higher towards topside resistance at 15.1480, followed by 15.2116.
  • 1w vols & risk reversals continue to pick up even following the SARB.
  • Spot now trading around the 50% fib drawn off the 18 Jan peak. Sup1: 14.9399, Sup2: 14.7895
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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