In this video, we look at the U.S Dollar's current strength against the Mexican peso and South African Rand being caused by rising U.S Government 10 Year Bond Yields.
The trends remain firmly in play for more dollar weakness, and potentially additional selling opportunities for both currency pairs.
Excellent job. I have been looking at USDZAR price action and I failed to understand whether this was trend reversal or just a correction. Based on your video, I get the impression that this is just correction because price is likely to drop further down due better interest rates in ZAR and poor interests rate in USD. I bank in ZAR and I have a feeling that in the long run ZAR is gonna be weak and USD is gonna be very strong. My plan is therefore to exchange (sell) ZAR to USD , hoping that in the future when USD becomes stronger, I will get some profit based on changes in the exchange rate. I wanted to exchange ZAR to USD now, my worries are USDZAR might drop further down and hence a loss. However if the price continues to go up the exchange rate will be expensive. What would be the best time to exchange ZAR to USD in order to hold on USD and make some profits?
pieterj30
⋅
@DoctorTanzanite,
I Agree with you that in the longer term the ZAR have to weaken against USD.
I am currently long USD/ZAR and if it goes lower to ex 14 or 13 , i will just top up more ...
DoctorTanzanite
⋅
@pieterj30, Ok thanks for your inputs. I am also monitoring USDZAR. Could you advise in this. Do you think it is good idea to open USD bank account in SA and exchange ZAR into USD. I think once USD stabilize the value of ZAR could drop immensely. Also I thought of exchanging ZAR to Bitcoin but cryptocurrency looks very risky. What is your take on ZAR and the economy of SA? Would opening USD account mitigate the possible weak SA economy? Is it ok to just continue saving in ZAR?