Market news
21.02.2024, 08:48

USD/ZAR: Rand could be running into a lot of trouble over the next month – ING

For a highly volatile FX pair, USD/ZAR has been exceptionally quiet. Economists at ING analyze the pair’s outlook ahead of the South African annual budget.

Rand in focus on pre-election budget

The challenge for South Africa's Finance Minister Enoch Godongwana will be seeking out pre-election giveaways while continuing to show that South Africa's debt-to-GDP trajectory will be stabilising at around 78% in 2025/26. That will be a challenging task given weak growth. And perhaps the biggest focus for FX markets will be whether the government decides to tap into the South African Reserve Bank's contingency fund for government spending plans. That would be a very bad look and probably trigger a strong upside break-out in USD/ZAR.

A USD/ZAR close above its 20-day Bollinger Band at 19.14 today (Bollinger bands are used as a tool in technical analysis to pinpoint breakouts from low volatility regimes) suggests the Rand could be running into a lot of trouble over the next month.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location