USD / ZAR: 15,1483
EUR / ZAR: 16,9238
GBP / ZAR: 18,27
ZAR / JPY: 7,0233
EUR / USD: 1,1172
GBP / USD: 1,2061
USD / JPY: 106,39
The ZAR has retraced some of its losses overnight and looking likely to break back below the 15.00 level. Political rhetoric still plays a major effect on the economy and the currency, as the ruling party is at loggerheads with each other, stalling investment in SA.
Assisting the move was the news of a delay in the US tariff implementation, where the powers that be are working towards an amicable solution for both countries. Other EM currencies like the Argentinian peso has been a catalyst in the weakening of most EM currency.
Internationally, Chinese data on Industrial Production growth has slowed down in the previous months, marking the weakest in 17 years.
In the US, we have a delay in the trade war between US/China as they look at pragmatic ways to appease both parties, this had the dollar weaken somewhat.
In the UK, we have the time running out on the Brexit as Boris Johnston is trying to close Parliament in an effort to bypass it at a critical time before the 31st October. Talking to traders, they looking for the cheaper dollars below the 15.00 level.
Trading range 14.90-15.40
Expected Economic Data This Week
- SA Retail Sales y/y
- US Import price Index y/y
USD/ZAR Hourly Candle
We have turned and look to see if this is just a correction or a turnaround to trade back into the R13.00’s.
USD/ZAR Daily Close
We have reached our min target of R15.30 but could see more upside before a turnaround. We remain patient for a better indication of future price action.
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