Danske Bank forecasts USD/ZAR at 15.00

Danske Bank forecasts USD/ZAR at 15.00

2020-11-20 • Updated

The South African Reserve Bank (SARB) left its interest rate unchanged. That decision underpinned the rand and allowed it to close green yesterday. The enormous government support measures in combination with optimistic vaccine news encouraged investors to stream their capital to emerging markets currencies such as the rand. Nevertheless, the current cautious market sentiment has limited the ZAR’s potential to rise. The fresh virus outbreak and related lockdowns, curfews, and social distancing restrictions toned the risk-on impetus down.

Forecasts

Indeed, there are downbeat risks for the African rand in the short term, but many analysts forecast the steady rebound of economic activity in 2021(which is so close already). Therefore, stocks and riskier currencies such as the rand will get a boost.

If we look at the USD/ZAR chart, we’ll notice that the rand has managed to regain most of its losses already. As Danske Bank properly mentioned, “we view most, if not all, of the fall in USD/ZAR as due to global tailwinds, not domestic”. In other words, the only risk-on sentiment would be enough to underpin the rand and drive USD/ZAR even lower. Danske Bank’s forecast is 15.0000 for the coming months. "We could see more emerging market strength in coming months as the reopening continues”. In addition, many credible banks such as JPMorgan and Goldman Sachs predict a soon fall of the USD, which would be beneficial for the ZAR.

Technical tips

After the gradual falling, USD/ZAR formed the symmetrical triangle, so the pair may go anywhere now. If it breaks the upper trend line at yesterday’s high of 15.5700, the way to the next resistance of 15.6500 will be clear. In the opposite scenario, the move above the lower trend line of 15.3180 will drive the pair lower to November’s low of 15.2000.

USDZARH4.png

TRADE NOW

Similar

Latest news

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera