|
FXOne would like to thank Warrick Butler from Standard Bank for his valued contribution to the commentary this morning.
Good morning
“I was addicted to the hokey-pokey, but then I turned myself around!”
Current USDZAR level: 18.6300/18.6400.
Rand range last week: 18.3000-18.7200 and NY Friday close: 18.6900.
The talk of the weekend wasn’t so much the Trump/Zelensky et-al saga, which is still on-going, but the almost comical movement in crypto after a somewhat “fortuitous” tweet by a certain president and his desire to add named coins to Fed’s reserves. Some of them moved 30% in a few hours which to me highlights just how much of a gamble these things are as opposed to an investment vehicle. One could just go throw some cash on the tables in Vegas or Sun City as its more fun and you get a free drink. I think it’s just as addictive too, if you hear how vociferous some of the die-hard crypto disciples are, in defending their market.
More important to me, was watching the Rand get smashed on Friday afternoon during the illiquid US afternoon session whilst everywhere else the Dollar was muted. This highlighted once again the joys of seeing someone try and execute a month-end fix in a market not conducive to requirements. It is now back to its resistance level, and I will be looking to fade this weakness, especially as nothing else has really moved (crypto aside).
This week we get the ever-important US employment data on Friday and so the market will gear up for that, but all eyes on headlines still with Ukraine still the go to story for global risks. This morning Zelensky has suggested he is ready to go back and chat to Trump which is good news, I guess. Let us hope they act like adults this time
Good luck and have a great week ahead.
Support levels –18.3500, 18.25/20, 18.1200, 18.0000, 17.8500, 17.6500.
Resistance levels – 18.6500, 18.78/80, 19.00/05, 19.20/25, 19.30/35, 19.5000.
|
