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ZAR Slips as Covid Cases, Political Unrest Rise Over the Weekend

SOUTH AFRICA
  • USD/ZAR trades +0.67% higher at the start of the session, paring Friday's move lower towards 14.20 as the market digests Rampahosa's level 4 restrictions extension and continued rioting over Zuma's arrest.
  • Although Ramaphosa has promised to resume the TERS benefits scheme, the extension of level 4 restrictions will see businesses under sustained pressure as many warn that they are at breaking point.
  • The cross remains mostly rangebound within the 14.14-14.51 range, awaiting fresh catalysts to determine a more decisive near-term direction.
  • The weekly focus remains on the deteriorating covid-19 situation as cases extend past 26,000/day and domestic political instability in the wake of Zuma's arrest – weighing somewhat on ZAR sentiment.
  • We also see manufacturing production data today, followed by mining and retail sales data in the coming days.
  • Intraday Sup1: 14.2271, Sup2: 14.1421, Res1: 14.3667, Res2: 14.4098
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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