| Rates | |
| USD / ZAR: | 13.76 |
| EUR / ZAR: | 14.8081 |
| GBP / ZAR: | 17.551 |
| ZAR / JPY: | 8.2572 |
| EUR / USD: | 1.0755 |
| GBP / USD: | 1.2744 |
| USD / JPY: | 113.76 |
- ZAR weakens overnight as risk came under pressure
- ZAR regains its losses in early morning trade
- Italian events creating chaos in Euro Zone
- Marker getting quieter as liquidity remains thin
ZAR remains range bound after the last of the rating agencies report was released. The Italian crisis is now the focus as it impacts on the Euro Zone and the currency. ZAR weakened some overnight as risk came under pressure but has regained some of its losses. The US rate hike seems very likely and possibly in the next coming weeks, which will make the dollar stronger. There are lots of questions being asked of the Trump Gov, if they will be successful in implementing some of his policies and if they will be both growth and US$ supportive. In SA, we have the release of the Q3 GDP figures, which will give an update on SA economic cycle. It certainly seems the Euro crisis could see the ZAR stronger. Talking to traders, they are busy squaring positions as the festive season draws closer and market liquidity gets thinner. Trading range 13.55-14.05.
| Economic Data: | 6th Dec | ||||||||
| Ø | SA GDP Annualised q/q | Ø | US Unit Labour Costs | ||||||
| Ø | Sa GDP y/y | Ø | US Durable goods Ex trans | ||||||
| Ø | US Durable goods orders | Ø | US Cap Goods Orders Nondef ex Air | ||||||
| Ø | US Trade Bal/Factory Orders | ||||||||
USD/ZAR Hourly Candle
So post the NFP & S&P rating the ZAR has managed to strengthen over R0.30.
The current formation is nowhere and thus I will advise staying out for the time being until we have a better view.
“In 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.”
– Paul Tudor Jones
USD/ZAR Daily Close
Now that we have most of the data out of the way I would advise looking to buy the USD from
R13.65 – R13.20 in the coming weeks with a view to a move back over the R14.10 level.
“I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms. – PTJ
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