Free Trial

ZAR Brushes off Local Political Risks, Focused on $ Weakness

SOUTH AFRICA
  • USD/ZAR has pulled back below 15.00 after some sustained flirting with 15.12 resistance during yesterday's session.
  • Some early weakness in the greenback has also helped see the pair drift lower, but will need to close below 14.80 this week to see a possible resumption of the prior downtrend.
  • Local politics is the core focus with Ace Magahsule being put in charge of the step aside process, making it seem less likely that he will be forced to leave his post as Secretary General – and instead will be petitioning for the ANC president role going forward.
  • This represents a major threat to Ramaphosa's grip on power within the party and will likely intensify the factional struggle in 2021 if Ramaphosa cannot exert enough power to have Magahule step down.
  • Commodities mixed to lower this morning: gold -0.27%, platinum +0.12%.
  • Risk sentiment out of APAC looks slightly firmer, however, which should buoy SA stocks.
  • USD/ZAR intraday Sup1: 14.8168, Sup2: 14.7158, Res1: 14.9207, Res2: 14.9845
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.