ZAR is comfortably the best............>

SOUTH AFRICA: ZAR is comfortably the best performer among EMFX so far Thursday,

pressing USD/ZAR back toward key support layered from the 100-dma at 14.0909,

the 50% Fib retracement of the 13.2362 - 14.7483 move and 13.8715, the early

April low. While relevant news is few and far between on South Africa so far

today, ZAR has been supported by the modest recovery in risk appetite among

currency markets during European hours (reflected in AUD, USD/JPY both

improving) and as participants assess the likelihood of the South African

cabinet reshuffle being market-positive.

-Yesterday, finance minister under the previous term Mboweni (former head of the

South African central bank) was short-listed among candidates to be sworn in on

May 22nd, increasing the likelihood that he will be re-appointed as finance

minister for another term.

-President-elect Ramaphosa is scheduled to be inaugurated on May25 and should

announce his cabinet 2 days later on the 27th. Analysts from both Morgan Stanley

and JPMorgan continue to eye 13.20 as a year-end target should the cabinet

formation provide further confidence among markets.