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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.
ZAR
ZARJPY closed above 8.8131 on Thursday, the June 2022 high, with the cross now at its highest level since 2018. Topside momentum built through that level yesterday and after a brief retest in early European trade, the cross has subsequently extended higher. This level also intersects closely with the April 2022 high of 8.8063, and therefore a weekly close above this resistance band would send a strong bullish signal, potentially signalling scope for further gains towards the 2018 high of 9.2932.
- Note, however, that the cross has now traded higher for 11 consecutive sessions, recording a substantial 8.5% bounce in the process, with the 14-day RSI above the ‘overbought’ 70-threshold.
- Nevertheless, the broader risk backdrop remains positive for the rand. Political uncertainty has eased, while the recovery in the commodities complex from this month’s lows has also aided the impressive post-election rally (Bloomberg’s precious metals index stands 4% above last week’s lows).
- For USDZAR, the pair is trading at multi-month lows, with recent weakness resulting in a break of 18.0290, the May 21 low and key support. Looking ahead, The Daily Maverick reported that President Cyril Ramaphosa and Democratic Alliance leader John Steenhuisen will meet today to discuss the allocation of portfolios and the cabinet line-up may be unveiled as soon as on Sunday or early next week.
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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