| Rates | |
| USD / ZAR: | 12,5437 |
| EUR / ZAR: | 13,543 |
| GBP / ZAR: | 15,671 |
| ZAR / JPY: | 8,8588 |
| EUR / USD: | 1,079 |
| GBP / USD: | 1,2484 |
| USD / JPY: | 111,32 |
| Ø | ZAR strengthens after data release | |||||||
| Ø | US concerns assists ZAR gains | |||||||
| Ø | Market looking to break12.50 | |||||||
| ZAR after its yoyo trading strengthened, once the better than expected SA current account numbers were released and mover below the 12.60 level. The ZAR continued to post gains despite the concerns manifesting themselves in the US Congress. Once ZAR improves it regains its footing and strengthens which assists the lowering of inflation expectations and a rate cut. There seems to be much confusion as to how far the ZAR will strengthen with some market players talking it lower and others intimating its getting ahead of itself. I would think with these good levels the importers will look to buy for their commitment but any marginal weakening will see selling. The trend for the ZAR remains firmly in favour of further gains, but market talk still has the political arena firmly in the back of their heads. Talking to traders they are range trading small positions with a bias to be short. Trading range 12.50-13.00 |
| Economic Data: | 23rd Mar | |||
| Ø | US Initial Jobless claims | |||
| Ø | US Continuing Claims | |||
| Ø | US New Home Sales m/m | |||
| Ø | US Kansas City Fed Man | |||
USD/ZAR Hourly Candle
This chart traded down to its targets and now we might well look to kick back to over the R12.84 level in the coming days.
I would however sell this rally!
” Fundamentals might be good for the first third or first 50 or 60 percent of a move, but the last third of a great bull market is typically a blow-off, whereas the mania runs wild and prices go parabolic.” – PTJ
USD/ZAR Daily Close
This chart is not bullish and could now easily trade sub R12.50 in the coming weeks / days.
“The markets are never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore
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