THE DOLLAR WEAKENED SIGNIFICANTLY YESTERDAY AFTER TRUMP’S COMMENTS ABOUT DOLLAR BEING TOO STRONG. HOWEVER I REMAIN A DOLLAR BULL AS LONG AS THERE IS STILL TALK OF FUTURE HIKES. SO ALL THAT COMES TO MIND IS THE AMOUNT OF PIPS TO BE MADE WHEN DOLLAR GETS STRONGER. THE ZAR WAS DOWNGRADED TO JUNK STATUS AFTER PRESIDENT ZUMA’S RESHUFFLE TRIGGERED RATINGS CUTS. I SEE THE ZAR WEAKENING FURTHER OVERTIME AS THE DOWNGRADE TAKES EFFECT GRADUALLY ON THE SOUTH AFRICAN ECONOMY AND THE MAN ON THE STREET. THE RAND MIGHT EVEN FALL TO 14 AGAINST THE DOLLAR, SO IN THE LONG RUN I THINK THE SMART MONEY WILL BE A BULL ON THIS PAIR.
2 thoughts on “USDZAR LONG SETUP, 13 APRIL 2017”
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I really think Rating companies are a sham. This is a sovereign state who can at will print money and influence policy to their benefit. Meantime the Zar weakens but once Zuma is out of office, it shall bounce back strongly
That will depend on who will take over from him and whether the ANC will still have the majority votes. Interesting times though!