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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 -0.52% lower at the open, tracking price action in USD/CNH.
- The cross ended yesterday's session +0.45% higher, having failed to break higher above 14.90 and the 61.8% Fib on the daily chart.
- Today's focus will be on the FOMC – with key discussion of taper timelines and distribution of the dot plot framework referring to potential lift-off and hike frequency likely to be the primary price action movers for the day.
- On the domestic front, we see core & headline CPI data due at 0900BST – expected to tick up slightly to 4.9% vs 4.6% prior.
- Goldman Sachs, however, expected headline to print lower at 4.7% - reinforcing the SARB's lower for longer rates stance.
- Sell-side remains at odds over the CPI trajectory towards November with some expecting higher prints to force the SARB into hiking by +25bp.
- This, however, is not our base case with Gov Kganyago acutely aware of the fragility of the recovery and unlikely to crimp SA's recovery with medium-term pricing vectors so well-balanced.
- PGMs have seen a more robust recovery in recent days, but remain at risk of further weakness should Fed developments trigger higher UST yields.
- Intraday Sup1: 14.6978, Sup2: 14.6072, Res1: 14.8632, Res2: 15.0546
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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