USD/ZAR: Vulnerable as risk and Gold support Rand – Societe Generale
Societe Generale analysts highlight a strong rebound in global risk appetite, benefiting the South African Rand. USD/ZAR is seen as vulnerable after failing to hold above its 200-day moving average at 17.00, with scope to grind toward 16.00. Softer SARB tightening expectations and lower local yields add further support to ZAR.
Rand gains with carry and risk bid
"ZAR is a clear beneficiary, supported by the risk rebound and a renewed lift in gold."
"USD/ZAR looks vulnerable, with scope to grind toward 16.00 following the failure to sustain above the 200dma (17.00)."
"Local rates add fuel to the rand - SARB FRAs have aggressively repriced, now implying just 19bp of tightening at the next meeting (vs 34bp last week) and 36bp cumulatively by year‑end (vs 83bp)."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
