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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- Acute ZAR weakness continuing today amid broad-based dollar buying
- Move may be exacerbated by a scaling back in long ZAR positioning in favour of more undervalued EMs, such as the RUB
- Bonds also seen selling off across the curve in today's session placing pressure on ZAR, but the sell side remains broadly constructive on SAGBs at this juncture
- Idiosyncratic factors affecting Turkey & Russian saw a diversion of risk flows to ZAR - which acted as a relative haven in recent weeks given muted implied vols and high real yields.
- However, with Russia-Ukraine tensions moderating and the CBR looking decisively hawkish, some of these flows may have reverted back to RUB
- Nevertheless, ZAR fundamentals remain strong with a robust current account surplus, real yield/carry differentials, balanced inflation and strong commodities
- So moves higher in USD/ZAR may be met with fading interest
Source: Bloomberg/MNI
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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