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ZAR At the Mercy of Global/TRY Risk Sentiment

SOUTH AFRICA
  • local yields lower in bull flattening on improved global risk sentiment and substantial current account print yesterday
  • 15Y & 30Y yields continue to outperform, looking to target Nov lows.
  • USD/ZAR trading marginally higher above the 15.00 handle, despite a late-session sell-off in the greenback & firmer CNY fixing towards 6.555.
  • Commodities providing little help with PGMs marginally lower.
  • Vols seen ticking up slightly, but with limited local data on the agenda price action likely to mirror global risk sentiment.
  • ZAR remains slightly exposed to a blowout in TRY sanctions risk premia due to its risk-proxy status. 15.20-14.90 range remains in play.
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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