Summary:

• South African President Zuma facing no-confidence vote
• Opposition needs 201 votes to oust the President
• Zuma has previously survived seven no-confidence votes (although none were held in secret

Controversial South African President Jacob Zuma this afternoon faces a vote of no confidence in the country’s parliament. Zuma has a chequered political history and unsurprisingly this isn’t the first time he has faced a vote of no confidence. On no fewer than 7 occasions has Zuma survived votes of no confidence but this time the outcome could be different. 

Opposition parties believe that MPs from the governing party, the African National Congress, would be more likely to vote against the president if their vote is secret. The MPs are currently voting at present and the result should be known shortly.

In terms of market impact the USDZAR is the obvious place to look. There was a strong move higher in the South African Rand (ZAR) yesterday when the vote was announced.

 USDZAR dropped sharply yesterday when news of the vote on President Zuma was announced. Source: xStation

 On a longer term chart the market remains in a downtrend and Monday’s declines saw price move away from a falling trendline. Yesterday’s high of 13.45 is a level to look for possible resistance but if price remains below here then further declines to 12.85, 12.60 and 12.35 are possible. 

 The market remains in a longer term downtrend and after Monday’s negative reaction to the vote being announced there could be further declines ahead. Source: xStation