The ZAR Exchange Rate Thread

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16.61. Screaming downhill - we might reach the 16.50 before NY close :)

The rollercoaster yestday was the US Fed speaking. 17 minutes into his speech he said something along the lines of "US will target an inflation of 2%" which instantly set the planet on fire. EURUSD catapulted up 600 points, turned around went 1300 points down, turned around again and came back 700 points to where it started 20 minutes ago. Similar story dollar yen, dollar cad, and anything with a dollar it in.

EDIT: for context an average day on EURUSD is 400 points in 24 hours. Yesterday was 2000+ points in 30 minutes

We just got the delayed whipsaw waves. Everything back to normal now

The spike iteself was probably automated trading going mad triggered - all movements were in positive divergence direction for all pairs (including ours i.e. dollar up against Rand).

Keep calm and carry on. Everything is okay now :)
 
agentrfr said:
16.61. Screaming downhill - we might reach the 16.50 before NY close :)

The rollercoaster yestday was the US Fed speaking. 17 minutes into his speech he said something along the lines of "US will target an inflation of 2%" which instantly set the planet on fire. EURUSD catapulted up 600 points, turned around went 1300 points down, turned around again and came back 700 points to where it started 20 minutes ago. Similar story dollar yen, dollar cad, and anything with a dollar it in.

EDIT: for context an average day on EURUSD is 400 points in 24 hours. Yesterday was 2000+ points in 30 minutes

We just got the delayed whipsaw waves. Everything back to normal now

The spike iteself was probably automated trading going mad triggered - all movements were in positive divergence direction for all pairs (including ours i.e. dollar up against Rand).

Keep calm and carry on. Everything is okay now :)
Click to expand...

I just hope that it holds until SA open on Monday.
 
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agentrfr said:
Dollar still currently overpriced over the last week. We should be fine for the weekend

By same token: euro currently undervalued. If anyone needs euros for next week prolly a good idea to get them now
View attachment 901424
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How did I end up looking at Table Mountain while tripping?
 
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agentrfr said:
Dollar still currently overpriced over the last week. We should be fine for the weekend

By same token: euro currently undervalued. If anyone needs euros for next week prolly a good idea to get them now
Click to expand...

Where are you guys buying euros so late in the day?

agentrfr said:
Trading is a mess boet xD
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The last few weeks have been ridiculous, gold prices look as volatile as Bitcoin.
 
John Tempus said:
Whichever way the US is going that would just fast track the same direction for the rest of the world.

Every country is so interconnected and specially with the US so politically and economically if things go south in the US it has a knock on effect with most of the rest of the world if not entire world.

If the US sink, we all sink and countries like SA thats been sinking before covid19 it will sink even deeper.
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Way I see it they either have to
* Get high level of GDP growth [failed]
* Inflate itself out
* Default on debt


Seems they are switching to inflating now..

Disagree somewhat on everyone tanking.. I think you will find regional blocks become important aka monetary & trade unions.. thing this, this kinda leaves the US out which is gonna interesting as post WWII they’ve been at the centre of it all.

Only question is how they take it..ie will they accept a lesser position? I think not which means they gonna go down brutally instead of the more gradual declines you see for other economies hence many speculating a sudden decline like hyperinflation and default on the cards.
 
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krycor said:


Way I see it they either have to
* Get high level of GDP growth [failed]
* Inflate itself out
* Default on debt


Seems they are switching to inflating now..

Disagree somewhat on everyone tanking.. I think you will find regional blocks become important aka monetary & trade unions.. thing this, this kinda leaves the US out which is gonna interesting as post WWII they’ve been at the centre of it all.

Only question is how they take it..ie will they accept a lesser position? I think not which means they gonna go down brutally instead of the more gradual declines you see for other economies hence many speculating a sudden decline like hyperinflation and default on the cards.
Click to expand...
That article you linked says USA will go into hyperinflation, highly doubt it.
Then it says buy gold because Buffet is buying gold, except it's not even 1% of his portfolio.

A bit of inflation is good for an economy, and the biggest issue has been that inflation is ~1% when targets for the last 10 years have been to try and get it around 2%. The problem was that they lowered interest rates too much.
And there is 0% chance of the US defaulting on its debt, that's pretty much impossible since they have more than enough reserves and the debt is in dollars, a currency they control.

And you'll probably start seeing a jump in GDP growth around Q4 (if not already end of Q3).
 
agentrfr said:
Dollar still currently overpriced over the last week. We should be fine for the weekend

By same token: euro currently undervalued. If anyone needs euros for next week prolly a good idea to get them now
View attachment 901424
Click to expand...

If you look really close at the chart you will notice it is a roulette table interpreted on a 2D format.
 
I've been going like Aragon, "HOLD, HOLD!" to the rand until my money is converted into USD. Just one more week, plz!
 
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