Biggest 2-Day Move in Years for ZAR as Ramaphosa Deemed Leader of ANC
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Current Deputy President of South Africa Cyril Ramaphosa is now the party leader of the African National Committee after a tight race was settled earlier this morning. The vote was largely welcomed by traders as it is seen as a turning point for the ruling party which has lost popularity among South Africans. Mr. Ramaphosa received 2440 votes, slightly edging above his opponent, Nkosazan Slamnin-Zuma by just 179 votes. Mr. Ramaphosa’s victory is a major upset for the current president, Jacob Zuma, who has been embattled by alleged fraud, corruption, and money laundering charges.
As mentioned previously, Mr. Ramaphosa’s victory is seen as a positive sign as he promises to end the corruption which will hopefully lead to restored business confidence in the nation.
Chart 1: USD/ZAR Daily Timeframe (April to December 2017)
Following of the news Mr. Ramaphosa’s victory the South African Rand continued to build up it's two-day rally, the sharpest two-day move since 2015 as USD/ZAR plummeted to a nine-month low. It is clear that traders have a favorable view Ramaphosa’s potential to restore business confidence in South Africa. At the time that this was written USDZAR traded at 12.7016.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.