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ZAR Tentative Ahead of Ramaphosa's State Capture Appearance

SOUTH AFRICA
  • USD/ZAR pulls back from 14.40 in early trading, having pushed higher during light holiday volumes yesterday to break the lateral range held since 16 April.
  • Focus today is on Ramaphosa's testimony at the state capture commission, where his detractors will likely try to find as many links to corrupt activity in the Zuma era as possible.
  • Although most efforts to do this in the past have mostly fallen short, risks of various tenuous links to projects and knowledge of corrupt dealings are possible which could dent Ramaphosa's anti-corruption image and have him mired down in court cases and accusations.
  • Beyond this, today's FOMC will be the key price action driver – with the Fed expected to keep settings mostly unchanged and accommodative with an eye on Powell's presser for his assessment of the recovery trajectory.
  • Intraday Sup1: 14.3398, Sup2: 14.2777, Res1: 14.3989, Res2: 14.4474
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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