2020-12-08 • Updated
USD/ZAR dropped to the low levels unseen since February as investors foresee the soon global recovery.
Some countries such as the UK started massive vaccinations, while others are already in the final steps. Therefore, investors streamed their capital to riskier assets like emerging market currencies on prospects for a global economic recovery. Indeed, the virus will be taken under control soon and the world economy will be boosted. According to Credit Suisse, “EM [emerging market] also looks well positioned to outperform whether there is a value- or growth-driven rally in 2021”.
It was necessary to impose record low interest rates in the world’s largest economies to stimulate economic activity. These countries won’t increase rates anytime soon. Whereas emerging markets have significantly higher rates and therefore higher yields. That’s why it’s beneficial to invest money in emerging markets.
USD/ZAR fell due to the optimistic vaccine news and the weak US dollar. Elsewhere, South Africa’s GDP recovered by 66.1% in the third quarter, showing the steady economic rebound of the country. However, it is still far away from the pre-pandemic levels.
Traders should closely observe this pair now as it has approached the key support of 15.0000. The price isn’t likely to break this level for the first attempt and we might see the retracement. If it manages to cross this level, the way down to February lows of 14.7250 will be clear. On the flip side, the move above the 50-period moving average of 15.2500 will drive the pair to the high of November 30 at 15.4500.
Brent crude futures is maintaining stability this Friday, with traders awaiting an OPEC+ meeting that might lead to further supply cuts. Brent crude was down 8 cents at $81.34 a barrel, following a 0.7% drop in the previous session.
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
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!
|
