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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 -0.37% lower at the open, with 15.60 resistance remaining intact this morning.
- The cross is positioned +2.17% off Monday's open, having peaked at +4.02% at 14.79 on Wednesday and is now approaching the 50% fib level of the weekly range at 14.5025.
- while Gauteng appears under control, KZN remains volatile with acts of looting and armed violence erupting in residential areas.
- SANDF will need to make a more substantial effort in KZN to bring about stability, which is currently being exacerbated by social tensions over the use of force by private security firms and volunteer citizens.
- Tentative signs of reopening of key transport routes for supply chains, but key shortages of fuel, medicine and food staples remain acute in KZN, while a lot of Gauteng has recovered after extensive panic buying.
- Parliament will discuss the response of private security firms today and may be a key source of frictions among various parties.
- Overall, the situation is much calmer – allowing focus to shift somewhat to next week's SARB.
- The MPC is expected to keep rates unchanged, with base effects expected to see CPI recede back towards the 4.5% midpoint of the range in the coming months – allowing Gov Kganyago to keep policy accommodative into early 2022.
- While supply disruptions may manifest into upside pressure on prices, the SARB will likely not want to jump the gun and tighten before data supports the need to do so.
- Intraday Sup1: 8.5025, Sup2: 8.4336, Res1: 8.5808, Res2: 8.6399
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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