Bearish Signal

•USDZAR formed a doji on a bullish trend indecision between buyers and seller it’s a sign that shows that sellers might take control of the market
• Global inflation concerns and the weaker rand are increasing speculation that the SARB will start raising rates as soon as their next meeting on 18th November. However, we do not expect modest rate hikes to offer much support for the rand
• South Africa has been running an unusual current account surplus since the pandemic began which is helping to ease their reliance on external financing and make the rand less sensitive to fluctuations in global investor risk sentiment. Still the rand has been undermined by the Fed’s more hawkish plans for a faster tightening of monetary policy