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ZAR Tentative as Local Political Risks, FOMC Minutes Loom

SOUTH AFRICA
  • USD/ZAR trades -0.30% lower this morning, mirroring price action in the BBDXY following yesterday's post-ISM move higher.
  • The cross managed to hold below 14.40 which coincides with the 100dma on the daily chart.
  • Domestic focus will be on police Chief Bheki Cele today as he faces contempt of court if Zuma is not brought into custody by midnight tonight against threats of violence from Zuma supporters and his lawyer.
  • An arrest order would be construed as positive by markets, but risks a violent clash between police and supporters.
  • Additionally, Cabinet will discuss the TERS benefits scheme today, with economists calling for more support measures to ease the impact of level 4 restrictions.
  • Beyond local events, the FOMC minutes will be a key price action driver as markets parse the details of the perceivably hawkish prior meeting that could spark elevated volatility in the tail end of the session.
  • Intraday Sup1: 14.2271, Sup2: 14.1421, Res1: 14.3667, Res2: 14.5198
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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