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ZAR Leads CEEMEA FX, Local Politics Coming into Focus

SOUTH AFRICA
  • USD/ZAR tracks USD/CNH and local yields lower, leading the CEEMEA pack, despite softer commodities: Gold -0.04%, Platinum -0.89%.
  • Local political scene is starting to heat up with Magashule and Ramaphosa due to face off over the weekend in a key factional battle for power in the ANC, which locals will be watching closely.
  • For today, focus is on US CPI and US real yields, following a pullback in yesterday's session that saw risk markets gain back some lost ground. USD/ZAR fell short of reaching major resistance at 15.6625, forming a bearish engulfing candle on the daily.
  • Continued softness in the USD may see dynamic support tested at the 50dma (15.1796), but markets will be wary of diving into high-yielders with uncertainties around the SLR issue and UST yield trajectory still in play.
  • Intraday Sup1: 15.2279, Sup2: 15.1796, Sup3: 15.1202, Res1: 15.3455, Res2: 15.4394
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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