The Rand has sold off aggressively today, with USD/ZAR rising over 4%. The pair could extend its rally if South Africa President Cyril Ramaphosa resigns today, economists at TD Securities report.

Ramaphosa likely to announce his resignation

“President Ramaphosa will make an announcement soon, likely resigning from his post. Speculation started to spread earlier today, and all eyes are on the 3:00 PM London time press conference. At the time of writing, we think the odds that Ramaphosa resigns today have exceeded 50%.”

“We think that USD/ZAR has room to extend the upside move to over 5% today, and possibly more in the coming days. This is predicated on Ramaphosa's resignation today, which would start a succession crisis within the ANC and bring about political confusion to South Africa.”