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ZAR Tracks Risk Sentiment, Awaiting Volatility Normalisation

SOUTH AFRICA
  • * USD/ZAR trading lower at the open as the dollar backs off slightly from yesterday's highs.
  • High-yielders continue to get hurt by intermittent bouts of UST yield volatility, generating choppy price action across the space.
  • ZAR continues to trade in the 14.85-15.12 range, awaiting a normalization in reflation trade volatility for downside catalysts.
  • Sell-side remains optimistic about ZAR, but similar to TRY, calling for a tactical approach amid outsized volatility and undulating risk sentiment.
  • Removal of backlogs in mining would be broadly positive, but is a long-term project.
  • However, bottlenecks in private participation of the vaccine rollout is a risk factor to monitor.
  • Commodities catching a slight bid: Gold +0.51%, platinum +0.29%.
  • Intraday Sup1: 14.9867, Sup2: 14.8795, Res1: 15.1202, Res2: 15.2116
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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