Daily outlook for ZAR: UniCredit

Quotes from UniCredit Research:

-South Africa CPI is likely to slide to +4.5% y/y in January vs. 5.3% in December. We see an asymmetric short-term impact: a bigger fall may help the ZAR, but a stickier CPI print may be neutral.

-The SARB has already signaled strong vigilance on inflation, imaging a rebound up to + 5.4% yoy on average in 2016.

-Yet,  any ZAR bounce will be short-lived given weaker Chinese growth, risks to growth at home from power cuts and higher US yields.