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ZAR at the Mercy of Global Factors; Brushes off New Restrictions

SOUTH AFRICA
  • Local yields open higher in a marginal bear steepener after days of flat trading amid low volumes.
  • 10Y & 30Y marginally above weekly resistance, but should track broad global risk sentiment.
  • USD/ZAR continues to hold a tight range between 14.55-14.6792, mirroring global developments and largely ignoring new local Covid restrictions - which fell short of a hard lockdown.
  • Continued downside in USD/CNY could see 14.55 break, supported by firm commodities
  • However, the 14.5175-14.50 level may continue to prove sticky while markets are quiet.
  • USD-side factors to dominate price action for now.
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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