Don’t waste your time – keep track of how NFP affects the US dollar!

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.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

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.

FBS Mobile Personal Area

FREE - In Google Play

View
South African Rand is boosted by risk-on mood

South African Rand is boosted by risk-on mood

Information is not investment advice

Goldman Sachs claims the ZAR may rise further, if global markets keep rallying. Let’s discuss it in detail.

Fundamentals

The South African Rand has depreciated a lot during the coronavirus pandemic. Indeed, the emerging economy was struggling from many different problems. The virus spread made things even more complicated. The rand has even become one of the worst performers on the Forex market so far in 2020. However, it has already managed to recover some of its’ losses. In addition, Goldman Sachs is quite confident that the ZAR will be able to continue the recovery.  

It is interesting that the ZAR has a highly positive correlation with the US stock market. The current risk-on sentiment pushed upward not only US stock indices such as S&P 500 and Nasdaq to fresh highs, but also riskier currencies. According to Investec, the rand will take further advantage of the optimistic sentiment. In the absence of negative market events, the ZAR will rise.

In addition, emerging market economies are likely to have higher interest rates than developed countries. Thus, investors are motivated to direct their capital to South Africa to get higher yields. That’s why the demand for the rand may increase. In the opposite scenario, if rates fall down, the rand will depreciate as well.

Technical tips

USD/ZAR has been trading for a while in a range between 17.3500 and 17.5000. Recently, it has broken the bottom of this range and escaped. It has approached the key support of 17.1800. The move below this level will drive the price even lower to the next support at 17.0500. On the flip side, it may rise to the resistance of 17.3500, which it has failed to cross a few times already. If it surges above this level, it may soar to the high of August 18 at 17.5000. Follow further news and join the flow!

USDZARH4.png

LOG IN

Similar

Popular

Dollar hits new 31-month low

U.S. stocks are seen opening mixed Thursday, pausing around record highs as investors await more fresh news on Covid-19 vaccines and potential fiscal stimulus.

EUR/GBP: Bullish trend remains strong

A tentative mood was seen in Asia-Pacific bourses following the flat performance on Wall Street, whilst Chinese Caixin Services PMI printed its second-highest reading in a decade.

Choose your payment system

Learn more

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later