EURZAR Analysis: Rising world prices for raw materials may support South African rand

August 19, 2020

By IFCMarkets.com

Rising world prices for raw materials may support South African rand

The downward movement means the strengthening of the South African rand and the weakening of the euro. South African Reserve Bank rate is 3.5% with inflation rate of 2.2% in annual terms. The ECB rate is zero with inflation rate of 0.4%. Rising prices for precious and non-ferrous metals, as well as for other mineral raw materials, may help strengthen the South African rand. A possible risk for the euro could be the outcome of the European Council’s emergency summit on the situation in Belarus. It will take place on Wednesday. Note that both the EU and South Africa will release construction data on Thursday.

Indicator VALUE Signal
RSI Neutral
MACD Neutral
MA(200) Neutral
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Neutral

 

Summary of technical analysis

Order Sell
Buy stop Below 20,4
Stop loss Above 21,1

Market Analysis provided by IFCMarkets.com

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