The US and China signed a partial deal yesterday, putting a temporary stop to global uncertainty! Without that being the end of the trade war, at least we can now wait and see if China respects the signed terms over the next few months...
Are emerging markets affected by the fresh rhetoric since China is supported, or should we just focus on monetary policy, particularly in South Africa today?
Market participants will now look at the EU and UK for a resolution on the Brexit front. Will the House of Lords prevent a January exit? And how will the EC react about an 11-month transition if they won't?
Watch our analyses on euro-pound and the SA rand!
Timestamp
EURGBP 8H 02:15 USDZAR 8H 04:45
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Stavros Tousios Head of Investment Research Orbex
This analysis is provided as general market commentary and does not constitute investment advice
Being from South Africa Iv started buying dollars, i see 20:1 to the USD soon,My chart is similar to yours. The problem though is i see a weak DXY index..what are your thoughts?
Interestingly enough, I see the DXY softening too from a technical perspective. However, this doesn't change my medium-term projection as divergences or the leading/lagging relationship between DXY/USDZAR have been spotted before. That being said, emerging markets are affected more by China since the tradewar too, and this no seems to be changing. Also on oil, of course. Many components to look into...
I also see Euro weakening after a top near 1.13, which suggests that DXY could be weak until that top is taken out?
@gson, The price/triangle-trendline could make a good level to consider at least a test.15-15.50 provided the pattern doesn't break down
gson
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@Orbex, This is what i have. Of coarse its early to say the pattern hasn't completed none the less 19+ in my books..Best of luck my brother. Thank you for your input.