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ZAR Under Pressure Ahead of ANC's Birthday Statement; Corruption in Focus

SOUTH AFRICA
  • Local rates flat to higher this morning after seeing selling pressure across the curve, with most of the damage noted in 10Y & 2Y yields.
  • 2Y holding below 2.50 & 30Y looking weak below 10.90. Platinum futures & strong APAC session leading stocks higher.
  • USD/ZAR pulls back slightly after rising ~2% on substantial bond outflows concentrated in the 10Y.
  • Local focus on Ramaphosa's address and positioning on corruption and Ace Magashule will be noteworthy.
  • Political risks may build next week following today's statement with factionalist comments likely to highlight divisions within the ANC.
  • No new restrictions expected until 15 Jan reassessment.
  • Absa PMIs at 0900GMT may provide clues to 4Q20 GDP momentum, which other PMIs suggest has fades slightly but looks ok.
  • Locals starting to talk more about risks to 1Q21 GDP & fiscal concerns going into Feb. 15.50 may be sticky today, provided DXY remains stable to lower around NFPs.
  • May see some week-end profit taking pull spot lower towards 15.2183. RES 15.57-15.60.
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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