FXMarketAlerts Team
FXMarketAlerts
Published at 07:47 (GMT) 23 Apr
Markets prefers to buy the USD/ZAR dips ahead of March CPI at 09:00BST, with the cross spiking to 10.60 from 10.54 in the hour before the data. However the move is also fuelled by temporary pullback in EUR/USD on the back of a notable drop in France manufacturing and services PMI, while the key level of USD/ZAR 10.62 remained intact after the Germany PMI data shortly helped to reverse gains in the DXY index. 4Cast expects March to increase 5.8% y/y compared to markets 5.9%, and with inflation already at the upper end of the target band, at 6.0%+ print will leave interest rate perceptions skewed to the upside and may offer support for the rand. However we would have to see gains to beyond 10.467 per dollar to inspire any meaningful momentum; and in such an external backdrop where the Ukraine tensions linger over sentiments, sustained levels seem highly unlikely. SAGB's similarly cautious ahead of the possibly stronger data, yields edge 2-3bps higher. AA
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