USD/ZAR: Target range raised to 15.50-16.50 – Credit Suisse

FXStreet Insights Team FXStreet

Economists at Credit Suisse raise their USD/ZAR target range to 15.50-16.50 (from 14.50-15.50 previously). What’s more, they refrain from setting the new target much above recent highs after a large rally and given that USD/ZAR no longer looks dislocated versus the broader EM FX complex.

Raise USD/ZAR target range to 15.50-16.50

“We lift our USD/ZAR target to 15.50-16.50 from 14.50-15.50 previously. Our previous target range looks too low in an environment where the USD overall remains bid.”

“We suspect that some of the latest rand-weakness and underperformance against other highyielders (namely MXN) could have been a result of re-balancing of local portfolios following a multi-month period of outperformance of local assets. These flows, to the extent that they continue, will probably prevent a major and sustained drop in USD/ZAR.”

“We deliberately refrain from setting the upper-end of our new range much above recent highs (of 16.32) because (1) the latest bottom-to-top rally in USD/ZAR (~10% since mid-April) is now only slightly short of the magnitude of two other similar episodes that unfolded in the last 12-month period and; (2) USD/ZAR does not look dislocated relative to the broader EM/FX complex like it did a few weeks ago.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.