Economists at Credit Suisse continue to think that USD/ZAR is exposed mainly to upside due to hawkish Fed policy risk but lower their target slightly to 16.00 in absence of an obvious short-term catalyst.

USD/ZAR target slightly cut to 16.00

“We lower our short-term USD/ZAR target to 16.00 (from 16.30 previously).”

“We still think USD/ZAR is exposed mainly to upside risk because we suspect the Fed’s tone is likely to continue to shift in a hawkish direction. Under these conditions, a rise in USD/ZAR back to early-January high of around 16.09 looks likely to us.” 

“We will most likely re-assess our USD/ZAR target in case USD/ZAR falls sustainably below the 15.00 mark.”