The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
Time to buy the world’s worst currencies
A top strategist, Charlie Robertson, said that these days we could gain from buying emerging-market currencies such as South African rand, Mexican peso and Brazilian real.
He strongly believes that these currencies are ready to reverse as they hit their bottom. In his opinion, this is the cheapest opportunity in over 20 years. Robertson’s main arguments are the upcoming weakness of the US dollar and the financial support of developing countries from the International Monetary Fund and World Bank. In addition, he said that crude oil prices may rise up to $45-50 per barrel in the mid-term with relevant rebound of the Russian ruble.
It’s hard to believe, but Charlie Robertson had already made forecasts that turned to be true. He was right about Romanian bonds in the late 1990s and South Africa’s rand in 2016. Who knows, maybe this time he is correct again.
The analyst's idea is that it's time to sell such pairs as USD/ZAR.
Let’s have a look at the USD/ZAR chart. The South African rand exceeded the 17.9 mark that equals to the pick of 2016. After that, it returned to this level again.
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…