USD/ZAR: Long live to the new 14.70-15.30 range – Credit Suisse

Economists at Credit Suisse raise their short-term target range for USD/ZAR slightly to 14.70-15.30. A sustained drop below 14.70 would require a substantial decline in the Bloomberg Dollar Spot (BBDXY). 

See: USD/ZAR set to extend its rally towards the 15.6645/15.6945 zone – Commerzbank

Choppy price action in the BBDXY holds from projecting a sizable extension of last week’s rally

“We now raise our USD/ZAR range slightly to 14.70-15.30. Despite the dramatic rise in USD/ZAR last week, a (new) range in the pair seems to us more likely than a continuation of trend towards higher levels.”

“Investors are unlikely to push USD/ZAR substantially above its Friday’s high while the BBDXY trades in a choppy way and while the local macro story remains relatively benign.” 

“We generally still expect the USD-leg to determine the direction in USD/ZAR. For instance, a sustained drop below 14.70 will require ‘dramatic’ developments on the dollar front – such very dovish comments from the Fed Chair, Jay Powell, at the Jackson Hole symposium that will take the BBDXY below its early month lows.”