Pure technical play. Shorting ZAR has heavy cost, thus expecting to see a swift bounce and then again ZAR to strenghten, especially as euro faces eco slowdown and brexit headwinds.
EUR faces eco slowdown would suggest the drop in EURZAR you were correct here, this follows similar fundamentals I use.
The zar news last weeks was great:
- Retail sales grew to 1.2% showing consumer confidence in South Africa
- PPI breached forecsats by 0.1% which is healthy for producers
- Interest rate decisions had no signs of dovish action so investor money flow should continue flowing into South Africa
- Trade balance showing a huge surplus
followed by the EUR weakness fundamentally. Checkout my idea very similar :)
RobertSoos
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@mattycheung, I am back again to EURZAR, it seems to me ZAR rally is bit stretched.
Eren_Jaeger_Trader
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@RobertSoos, I believe fundamentals have shifted in the favour of some strength. Zar data started to show signs of weakness while EUR gained some points
The zar news last weeks was great:
- Retail sales grew to 1.2% showing consumer confidence in South Africa
- PPI breached forecsats by 0.1% which is healthy for producers
- Interest rate decisions had no signs of dovish action so investor money flow should continue flowing into South Africa
- Trade balance showing a huge surplus
followed by the EUR weakness fundamentally. Checkout my idea very similar :)