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USD/ZAR Surges Above 16.20 as Variant Concerns & Risk Aversion Weigh

SOUTH AFRICA
  • USD/ZAR trades +1.77% higher this morning, driven higher by the imposition of travel restrictions across the globe following yesterday's reports of a new variant of concern.
  • The cross broke the 16.00 handle this morning, rising back towards November 2020 levels with upside momentum accelerating into overbought territory on the RSI.
  • Price action in the cross remains bullish with the variant alongside EU lockdowns sparking broad risk aversion on a global scale. Notable move in ZAR/JPY overnight, now down -2.24% and approaching the 7.00 handle.
  • USD/ZAR risk reversals seen ticking higher on a 1w & 1m basis.
  • Notable topside levels in USD/ZAR seen at 16.3385, 16.7411 & 17.1554. Intraday Sup1: 16.1044, Sup2: 16.0373
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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