What weakens the South African rand?

What weakens the South African rand?

The South African currency has weakened on Tuesday. As a result, the USD/ZAR pair has tested its March’s highs near the 14.63 level.

What are the reasons?

·        One of the main reason has political roots. Cyril Ramaphosa, the recently chosen president of South Africa, vowed to boost employment and eliminate corruption. However, investors worry about his ability to do that.  Their worries increased after the widely expected announcement of the new Cabinet was postponed on Monday.  

·        The head of Eskom, the South African electricity public utility, Phakamani Hadebe, resigned from his post. Now, the leading state enterprise is expected to report a 20 billion rands loss for the previous financial year.

·        Finally, S&P Global Ratings kept South Africa’s credit rating below investment grade on Friday.

·        Also, take a note that the escalation the US-China trade war hurts the ZAR as well.

Now investors pay attention to the news concerning the announcement of the new Cabinet of ministers. The decision should be made later this week.

What about the technical levels?

Bulls keep testing the resistance at the weekly pivot at 14.6287. The next resistance will lie at May 28 high at 14.7220. The pair needs to fall below the 14.5215 and 14.4282 levels to resume the bearish pressure. The first support for it lies at 14.3210. If this level is broken, the next key support will be placed at 14.2761 (50-day SMA). 

Similar

USD/MXN: optimistic on the vaccine coming?
USD/MXN: optimistic on the vaccine coming?

During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?

Latest news

USD starts the week with gains
USD starts the week with gains

Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.

ECB report is in focus
ECB report is in focus

The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

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

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

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