The US dollar gained 15% against the South African rand over the last thirty days. Despite the mentioned rally, analysts at CIBC warn the ZAR could drop further. Key Quotes: “Foreign purchases of South African bonds have materially retreated over the last month. The long-term correlation between USD/ZAR and the one-year moving average in bond purchases highlights ongoing ZAR negativity. The drop in oil prices, even in Rand terms, should prove supportive for domestic industry. However, the decrease in demand, allied to ongoing power-related issues and load shedding, remains a drag upon activity.” “Given that the country has little fiscal capacity, the focus remains on the SARB. Expect rates to be further eased towards the GFC crisis lows at 5.00%, despite the capitulation in the ZAR and risks stemming from imported inflationary influences.” “Domestic investors are fleeing asset markets, as they begin to prefer holding cash, and foreign investors are likely to continue doing the same, until there is clarity surrounding the extent and duration of macro negativity.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD Price Analysis: Pound depressed near 35-year lows, post-BOE rate cut and £200 billion QE addition FX Street 2 years The US dollar gained 15% against the South African rand over the last thirty days. Despite the mentioned rally, analysts at CIBC warn the ZAR could drop further. Key Quotes: “Foreign purchases of South African bonds have materially retreated over the last month. The long-term correlation between USD/ZAR and the one-year moving average in bond purchases highlights ongoing ZAR negativity. The drop in oil prices, even in Rand terms, should prove supportive for domestic industry. However, the decrease in demand, allied to ongoing power-related issues and load shedding, remains a drag upon activity.” “Given that the country has little fiscal… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
