Free Trial
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 higher at the open, broadly in line with USD/CNH price action, having retested the 14.00 handle post FOMC.
- Yesterday's meeting surprised to the hawkish side with the dot plot displaying median expectations for an expedited 2023 hike, core PCE lifting to 3% and the 2021 GDP forecast upgraded to 7% - boosting volatility in EM FX.
- This, combined with a sharp rise in covid cases, resulted in a sharp depreciation for high-beta ZAR, which has been overstretched vs fair value models for some time now.
- On the technical front, USD/ZAR has tentatively broken the bear channel pattern drawn off the 06 April and exerting pressure on the 50dma.
- The RSI has also notably crossed the 50 line, signaling a pivot towards bullish momentum.
- Focus will be on seeing a close above the 50dma to open up the 14.50 level & 100dma above – closer to the fair value band at 14.50-15.00.
- Intraday Sup1: 13.9532, Sup2: 13.8163, Res1: 14.0768, Res2: 14.1536
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok