ONLINE FOREX BROKER
What’s going on?
Moody’s downgraded the country to ‘junk’ status on Friday. It sent the country’s CDS up 31 basis points to 439 on Monday, data from IHS Markit showed. The country was stripped of its last remaining investment grade rating. In fact, South Africa’s economy collapsed before the coronavirus outbreak.
Consequences
South Africa’s 5-year credit default swaps - used by investors to insure against a government debt default - jumped to their highest level since 2009. As a result, it will fall out of the FTSE World Government Bond Index after April, which could prompt significant capital outflows. Moreover, it will also surge borrowing costs, and that will make it even more difficult for the government to close the budget gap.
What does it mean?
Let’s look at the chart below that represents USD/ZAR exchange rate monthly. The rand fell to a record low of 17.9630. The direction of USD/ZAR is skewed to the upside. It may reach 18.0000 mark and break above previous 2016 high of 17.7840. On the downside, USD/ZAR remains supported above 15.3750, which marks the 61.8% Fibonacci retracement.
Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.
This Wednesday will be heaven for day traders. A considerable number of events will make the market volatile. Don't miss it!
The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!
Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today! Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…
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