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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- USD/ZAR trades +0.38% higher this morning on the back of broad-based USD strength going into this evening’s FOMC minutes.
- Remarks from Fed speakers Brainard & George sparked risk-off in yesterday’s session with ZAR among the most exposed to the shift in risk sentiment.
- ZAR has made a notable rally in recent weeks based on improved terms of trade and favourable risk conditions, but this risks unwinding in the event of a hawkish surprise in the FOMC minutes.
- The cross is testing key resistance at 14.7368 from the day prior to hawkish SARB meeting – with a close above opening up a potential move towards 14.85-15.00. Additionally, SA’s terms of trade have narrowed in the past weeks, removing some positive ZAR inertia from the equation.
- Nevertheless, markets are now expecting a hawkish set of minutes and any disappointment could see a resumption of more favourable risk conditions. Ramaphosa is also yet to receive the next Zondo report focused on Eskom, which was set for this week – something to watch for going into the weekend.
- Intraday Sup1: 14.7005, Sup2: 14.6466, Res1: 14.784, Res2: 14.8548
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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