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ZAR Outperforming on Local Catalysts; Fed Comes Into Focus

SOUTH AFRICA
  • USD/ZAR also flat, despite early USD weakness but similar to CNY also mostly flat.
  • Limited local data leaves the cross exposed to global sentiment and this evening's Fed meeting.
  • Swap rates continue to track lower in line with local GBs.
  • Although not the base scenario, there is scope for a hawkish surprise at this meeting based on WAM of Fed asset purchases that have been priced in by some participants - and should be taken heed of.
  • 15.00 handle on USD/ZAR should be reinforced by recent price action with a downside bias towards 14.77, but will largely depend on global factors.
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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