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ZAR Gets Bumpy as China Headlines Stir Up Volatility

SOUTH AFRICA
  • Local yields mostly flat after seeing some solid inflows into the front end of the curve
  • 2Y yields pulled towards 4.50 (-11.2bp), 10Y below 8.75 (-8.8bp)
  • USD/ZAR remains choppy within its lateral range, but opens lower to track developments in USD/CNY & China headlines.
  • Spot trading at the lower band of the range held since 21 Dec (14.5610-14.6783).
  • Precious metals marginally on the back foot this morning.
  • Move through 14.5610 opens up 14.5170 after multiple tests of the lower band we may see this break if USD selling accelerates today.
  • With a very quiet local scene, global sentiment should dominate price action today.
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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