USD/ZAR leaps to 2-month tops on political jitters

Pablo Piovano FXStreet

The South African Rand keeps losing ground at the end of the week, now lifting USD/ZAR to test fresh 2-month tops past 13.60.

USD/ZAR higher after SARB, politics

The offered bias arpund ZAR picked up pace after the SARB left unchanged its monetary status quo, matching the broad consensus, although it delivered a somewhat dovish message, leaving the currency exposed to fresh sellers.

Furthermore, on Thursday President J.Zuma fired FinMin P.Gordham and several other cabinet members, while the broader markets continue to see the situation as a crisis of credibility that could push the Rand lower.

In the meantime, ZAR depreciated almost 11% since Monday’s tops in the 12.30 area vs. the greenback to today’s low so far near 13.40.

USD/ZAR levels to watch

At the moment the pair is up 0.82% at 13.38 facing the next hurdle at 13.69 (high Jan.30) ahead of 2017 top at 13.99 (Jan.11). On the downside, the initial support emerges at 12.78 (low Mar.20) followed by 12.30 (levels last traded in July 2015).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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