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ZAR Pauses For Breath after a Robust Week

SOUTH AFRICA
  • Local rates bull flattening to close out a strong week.
  • 30Y outperformed -18.1bp as markets expand duration exposure. 10Y now holding below 8.70 handle.
  • USD/ZAR slightly on the backfoot this morning on a firmer Greenback.
  • Quiet local agenda should see global factors dominate price action - may see some profit taking after a strong week of ZAR gains.
  • Softer commodities (-0.22% for gold & -0.86% platinum) and USD/CNY upside towards 6.5650 could cap USD/ZAR downside into the weekend.
  • Short-term resistance coming in around 14.80-14.82.
  • Cross should continue to drift lower towards 14.50 into next week should risk sentiment remain supportive to high-beta gains.
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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