Gapex Morning Gut Feel Report 18th of November

1. ZAR under pressure
2. J Yellen hints at US rate rise
3. US bond rise at expense of EM markets
4. Rating agencies in SA to assess

ZAR under pressure after Janet Yellen testified to the Joint Economic Committee, that the Fed saw a rate hike case getting stronger as a result of, inflation edging higher, consumer spending is moderate and keeping rates here could create excess risk taking. Markets are at the mercy of the rise in US yields, which could prompt outflows from EM bond market’s. The frustrating part is that all the hard work the Min Of Fin and Treasury are putting, is being ruined by the political situation and the constant Gov pending abuse.SA is facing the wrath of the rating agencies, who are at present in SA looking at the financial and fiscal situation here. Talking to traders while they were sitting on side line having missed the boat, as they feel ZAR will retrace. Trading range 14.20-14.60.

USD/ZAR Hourly Candle

The market appears as though it still wants to correct, but I would look to buy from R13.95 – R13.75 for a ST rally.

“Intellectual capital will always TRUMP financial capital.”

– Paul Tudor Jones

USD/ZAR Daily Close

This has been a wicked rally of epic proportion off the back of what we already knew on Wednesday.

My best advise would be to stay out as this is just to volatile and still range bound in the greater scheme of things.

“As in trading and life, very few things are ever as they seem” – Anonymous