SSA Currencies: Bullish View Playing Out

In late July, we identified the upside potential of several sub-Saharan African currencies, highlighting that appreciation looked likely thanks to improving global risk appetite, the high yields on offer and bullish technical patterns. This view is playing out well, with the high-yielders in particular having made significant gains. With the same factors still in place, we remain bullish, expecting further appreciation over the coming weeks and months. In our view, the Kenyan shilling is one to watch since it has yet to see significant upside and the technical picture is encouraging.

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