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ZAR Gains 2.20% W/W vs the USD, Local Politics to Heat Up in 2022

SOUTH AFRICA
  • USD/ZAR trades +0.26% higher this morning, tracking tentative upside in the BBDXY. ZAR outperformed last week, gaining 2.20% vs the USD and closing below its 50dma on the daily chart.
  • Local politics are coming into focus as the Zondo report on state capture stirs up the need for action from Ramaphosa and the ANC in 2022 ahead of the party’s elective conference in December.
  • Promises from Ramaphosa for an accelerated reform agenda and steps against corrupt officials are positive, but will need to be backed up with signs of implementation before markets get too upbeat.
  • With limited data on the agenda outside of manufacturing production, the cross should continue to trade in line with US data and global risk sentiment this week.
  • Attention will be on US CPI, PPI & retail sales as markets anticipate a tighter Fed stance in 2022.
  • Next major support is at 15.50 & 15.30 (near 100dma) in USD/ZAR. Intraday Sup1: 15.5230, Sup2: 15.3914, Res1: 15.7174, Res2: 15.7657
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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