Free Trial

ZAR Assets Brush Off Downgrades; USD In The Driver's Seat

SOUTH AFRICA
  • local yields see marginal bear steepening at the open on light follow-through from Friday's surprise downgrades.
  • 10Y +2.8bp, trading above 8.80 support, 30Y (+2.7bp) holding below 11.00 topside resistance.
  • Muted reaction to downgrades most likely due to SA's prior exclusion from the WGB Index, giving further downgrades less marginal impact.
  • USD/ZAR open lower in line with CEEMEA peers and broad risk sentiment as the DXY holds around key support at 92.20.
  • With limited local catalysts on the agenda for today, the cross should track USD-side moves. Cross remains rangebound within the 15.60-15.20 band, awaiting breakouts on either side for more meaningful direction.
  • Commodities mixed: Gold +0.20%, Platinum -0.29%, while the Top40 tracks APAC higher above 52,000.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

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.