| Gut Feel | |||||||
| Rates | |||||||
| USD / ZAR: | 13,7964 | ||||||
| EUR / ZAR: | 14,6176 | ||||||
| GBP / ZAR: | 17,096 | ||||||
| ZAR / JPY: | 8,0625 | ||||||
| EUR / USD: | 1,0584 | ||||||
| GBP / USD: | 1,2382 | ||||||
| USD / JPY: | 111,42 | ||||||
| Ø | ZAR still resilient but is there some outside influence | ||||||
| Ø | Dollar remains bid causing markets and investors looking for safe haven | ||||||
| Ø | Investment grand indices a huge concern | ||||||
| Ø | Market long of dollars due to political upheaval | ||||||
| ZAR amazingly has remained pretty resilient, which to my mind makes me think that there must be some outside influence helping it. Maybe it’s the SARB which gives one food for thought, that they may have thought the Political situation can and will be sorted out soon, as they will need to get the dollars back sometime. During all the upheaval in SA we have lost sight of what’s transpiring in the rest of the world. The dollar has remained strong on the back of geopolitical tensions causing investors to look at safe-haven currencies and commodities. Fitch downgrade together with S&P has market nervous and disappointed and has now highlighted the “investment grade rating only indices” in SA. This exclusion will only transpire in 30 days, in which some $49 billion worth of bonds estimates could possibly be technical outflows and if this was to materialise this could be calamitous. Taking to traders they are staying long of dollars amidst the political turmoil and blatant lack of understanding of the downgrade to junk status. Trading range 13.70 -14.50 | |||||||
| Economic Data: | 10th Apr | ||||||
| Ø | US Labour Market Cond Index | ||||||
USD/ZAR Hourly Candle
This charts current formation looks like it will take out the MT highs and could trade to over the R14.15 level.
” If I have positions going against me, I get right out; if they are going for me, I keep them… Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.” – PTJ
USD/ZAR Daily Close
Well this chart could still rally to well over the R14.00 level, and hence we will stay out here!
“The markets are never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore
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