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ZAR Faces Down Dim SONA Prospects

SOUTH AFRICA
  • USD/ZAR drifting lower at the open in line with USD/CNH and a weaker greenback.
  • Price action managed to stay below 14.77 resistance, and will dial in on Ramaphosa's SONA this evening which should set the tone for the 24 Feb budget.
  • Analysts mostly expecting a disappointing SONA, light on tangible economic recovery plans.
  • Focus will be on the vaccine rollout, economy and energy stability plans amid protracted load-shedding.
  • USD/ZAR remains heavy, relishing recent $ selling and signs of a potentially better than expected fiscal picture at the Feb 24 budget.
  • Vaccine uncertainty slightly tempering optimism, but global risk on/off sentiment remains the primary driver at this juncture.
  • Sup1: 14.6416, Sup2: 14.50, Res1: 14.77, Res2: 14.8332
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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