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ZAR/USD and the Fed's next move

The ZARUSD pair has been an interesting one to watch, currently around 0.06072604 after a slight pullback today. It touched 0.06133765 earlier but couldn't hold. It feels like everyone's still trying to gauge the Fed's resolve. With all the talk of a 'higher for longer' narrative from various Fed speakers this week, it's hard to justify much conviction for sustained strength in EM currencies against the dollar just yet. My watchlist is still leaning towards dollar strength on any dips, especially if we get further hawkish commentary or resilient CPI figures next month. Seems premature to bet against the dollar's carry advantage when the market is still pricing in an eventual pivot that might be further out than some anticipate.

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