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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 -0.41% lower this morning on the back of better-than-expected Chinese retail sales & Industrial production data.
- The focus this week shifts to CPI and the SARB meeting, with markets split over the prospect for a +25bp hike (bbg consensus currently hold).
- CPI is broadly expected to remain flat at 5.0%, but risks remain tilted slightly to the upside following the last PPI print that saw markets boost rate hike expectations.
- We stick with our call of rates unchanged out to 1Q22, with Governor Kganyago acutely aware of the fragility of the current recovery amid extensive load-shedding, elevated unemployment, muted consumption and a wide output gap.
- This may drive some ZAR volatility this week and see a slight dovish repricing higher in USD/ZAR following the decision. Attention is on 15.50 to the topside & 15.00 below.
- Beyond monetary policy, political parties will scramble to form coalitions this week with the 23 Nov deadline looming.
- On the international front, US retail sales and industrial production are the big-ticket data items to watch out for.
- Intraday Sup1: 15.212, Sup2: 15.1089, Res1: 15.3532, Res2: 15.3914
1x4 FRA-Jibar Spread
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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