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ZAR On the Backfoot as Global Factors Take Centre Stage

SOUTH AFRICA
  • USD/ZAR opens higher in line with weaker risk sentiment and a buoyant USD.
  • Exceptionally quiet week leaves price action vulnerable to global factors and low liquidity dynamics
  • some perhaps looking to take some risk off the table into year-end.
  • Focus remains on US stimulus package.
  • Topside resistance at 14.7691, 14.8275 & 14.8907.
  • 14.50 may prove sticky and will require improved global sentiment to break.
  • Move below unlocks a more decisive move towards 14.00-14.10 in the near-term.
  • 1Y basis swaps seen ticking higher towards 80 - showing increased costs to short ZAR.
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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