News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/qP96xmgDVn
USD/ZAR Outlook: ZAR Remains Resilient Despite Dismal Economic Data

USD/ZAR Outlook: ZAR Remains Resilient Despite Dismal Economic Data

Tammy Da Costa, Markets Writer

South African Rand Forecast:

Dismal Economic Data Weighs Heavy on the Rand

South Africa’s unprecedented GDP figures sparked panic after Statistics South Africa (Stats SA) confirmed that GDP had contracted by 51% in Q2 2020 and by 17.1% YoY (Q2), SA’s largest annualized contraction in history.

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

Although the emerging market is still experiencing the first wave of the Coronavirus pandemic, the easing of lockdown measures boosted hopes of a economic recovery but optimism was short lived after power utility, Eskom, reimplemented load shedding (rolling blackouts), hindering business productivity.

Over the next six weeks, focus will be on the mid-term budget speech, where South Africa’s Minister of Finance, Tito Mboweni will discuss the road ahead, which is definitely not going to be an easy one. This is expected to take place between 19-26 October, although no official has been confirmed. With Tax revenues decreasing and government debt increasing at a rapid rate, risk sentiment will likely be influenced by the policy plans discussed.

Fibonacci Retracement Holds Bears at Bay

In August, the ZAR managed to strengthen against its USD counterpart, mainly attributed to Dollar weakness, but bears were unable to break through the 50% Fibonacci retracement level (16.635) which continues to hold as support.

USD/ZAR Weekly Chart

USD/ZAR Outlook: ZAR Remains Resilient Despite Dismal Economic Data

Chart prepared by Tammy Da Costa, IG

Moving Average Provides Resistance

Although the ZAR has fallen against the US Dollar, bulls were still unable to break above 17.00, a key psychological level. Meanwhile, the 50-day Moving Average has formed an additional resistance level, creating downward pressure on the pair.

USD/ZAR Daily Chart

USD/ZAR Outlook: ZAR Remains Resilient Despite Dismal Economic Data

Chart prepared by Tammy Da Costa, IG

USD/ZAR Strategy Ahead

While economic uncertainty, corruption and mismanagement of funds have raised concerns about the recovery of the Rand, the upcoming US elections and rising tension between America and China, are additional factors to consider moving forward. As elections approach, volatility between the pair is expected rise, which may see price action gaining momentum in either direction.

For now, the 17.00 level continues to hold as resistance. If this level is broken, 17.276, the 38.2% retracement, would be the next level to watch out for.

However, if South Africa is able to provide a solid plan to boost economic recovery, bears may be able to exert downward pressure, in an effort to break below 16.635, the 50% Fibonacci level which holds as support.

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES