=> Here we are positioning to the buy side and fading the recent strength from ZAR. => For all of those following our portfolio on Tradingview you will have noticed us tracking a rebound across some parts of the EM spectrum, South Africa is not one. => Timing wise... CPI data on Wednesday will come in slightly lower than expected but still remaining way above target. Growth is looking poor as the economy remains in technical recession and SARB will likely keep rates on hold. => Even if the SARB decide to jawbone a hawkish rhetoric we don't see this a a market moving event, the problem is far deeper than that here. Repatriation of land forces your currency in one direction. => A risk to our thesis is geared towards the long end of the curve via weak growth.... => Good luck all
Trade closed: stop reached
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Retracement in EM continues, actively tracking 14.00x...