Although USD/ZAR fell to 8.58 on Friday, the eventual snapback and close above 8.70 has maintained the larger USD-bullish tone. We continue to target 9.20 (50% retracement) later this quarter given the bearish sentiment towards the ZAR. Indeed, EUR/ZAR respected support at 11.00 for three consecutive days, and the risks are for an eventual push to 11.65 once the near-term base-building phase is completed.
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Barclays Capital