| Rates | |
| USD / ZAR: | 13,8575 |
| EUR / ZAR: | 14,7975 |
| GBP / ZAR: | 17,2466 |
| ZAR / JPY: | 7,9608 |
| EUR / USD: | 1,0666 |
| GBP / USD: | 1,2437 |
| USD / JPY: | 110,53 |
| Ø | Rating agencies downgrades SA to junk status | |||||||
| Ø | ZAR loses ground on announcement | |||||||
| Ø | Globally FOMC minutes tomorrow | |||||||
| The inevitable has happened as some of the rating agencies have downgraded us to junk status, the catalyst being the ill-timed and ill-considered cabinet reshuffle. All the good done by the previous Min of Fin has been washed down the drain. I am not sure that JZ really cares about the downgrade as was reiterated by his ANYL chairman. The rating agencies have lost patience and said the reshuffle has placed fiscal and growth outcomes at risk. There are still far more risks awaiting us, as what do the hedge funds do with their funds invested in SA. They surely will repatriate the funds putting the ZAR under extreme pressure as market looking at a possible slip by a further 3cents. The possibility of a rate cut has now dissipated into the wilderness and now looks like inflation could be on the rise. Talking to traders after a period of what to do, they now staying long while we have all this uncertainty. Trading range 13.80-14.50 |
| Economic Data: | 04th Apr | |||
| Ø | US Trade Balances | |||
| Ø | US Factory Orders | |||
| Ø | US Durable Goods Orders | |||
| Ø | US Cap Goods Orders Excl Air | |||
USD/ZAR Hourly Candle
Junk Status, well junk has not status and now who knows.
all I do know is that if foreign funds withdraw sooner or later specialized Junk Bond funds will arrive, but between now and then, good luck to all.
” 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
Junk Status, well junk has not status and now who knows.
all I do know is that if foreign funds withdraw sooner or later specialized Junk Bond funds will arrive, but between now and then, good luck to all.
“The markets are never obvious. It is designed to fool most of the people, most of the time.” – Jesse Livermore
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