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ZAR Fails To Break Consolidation Pattern, Local Politics Take a Breather

SOUTH AFRICA
  • USD/ZAR opens higher in line with a firmer greenback into today's Fed meeting.
  • The cross failed to confirm a decisive break the lower bound of the sideways range between 14.80-15.2116, reinforcing the consolidation.
  • Quiet local scene today following yesterday's vote on the Public protector, which yielded a win for the Ramaphosa faction over Magashule.
  • Nevertheless, a long process lies ahead to see the PP fully removed from office.
  • Focus on the Fed, UST yields and the USD today which should be the primary price action driver.
  • 1m implied vols trading at YTD highs, but 1m Risk reversals relatively subdued.
  • Mixed commodities (Gold +0.21%, Platinum -0.58%) and slightly weaker APAC session filtering through into weaker local stocks (T40 -0.32%).
  • USD/ZAR intraday Sup1: 14.7746, Sup2: 14.7158, Res1: 14.9867, Res2: 15.1202
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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