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ZAR Assets Unmoved by Political Rumblings as Ramaphosa Tightens his Grip on Power

SOUTH AFRICA
  • Nasty little squeeze higher in USD/ZAR this morning on a bout of $ buying in line with higher US treasury yields.
  • Interesting to see USD/ZAR decoupling somewhat from CNH price action in recent sessions, but more similar price action seen this morning.
  • Local political rumblings yet to see a major effect on FI/FX & risk premia, but talk of cabinet reshuffles and RET split from the ANC are definitely factors to consider as Ramaphosa moves to cement his grip on power within the ANC.
  • Positive momentum in the virus situation should support ZAR assets, provided some tangible follow-through on the updated rollout strategy is realised in the coming weeks.
  • Broad risk sentiment likely the key price action catalyst today.
  • Intraday Sup1: 14.5238, Sup2: 14.4746, Res1: 14.6173. Res2: 14.6790
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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