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ZAR Trims Post FOMC Gains as Focus Shifts to the SARB's Next Steps

SOUTH AFRICA
  • USD/ZAR trades +0.50% higher this morning, trimming yesterday’s post-FOMC move to 15.4112 slightly.
  • Risk-on supported gains in high-beta ZAR following Powell’s guidance which sparked a sharp decline in the greenback.
  • Today may see some consolidation as markets digest the meeting and assess the Fed’s path to tackling inflation with a front-loaded cycle.
  • The cross is now testing the underside of the 38.2% Fib of the 31 march-03 May range, with a continuation lower looking to test the 100 dma & 50% fib in the 15.25-15.30 range, followed by the 200dma at 15.16 below.
  • Markets will eye the next SARB meeting to see if Governor Kganyago will look to move in step with the Fed and deliver a +50bp hike at the next meeting following a narrow MPC split (3-2 for 25bp vs 50bp) at the last meeting.
  • Intraday Sup1: 15.4215, Sup2: 15.2911, Res1: 15.6487, Res2: 15.7331

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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