DXY has been on a tear this month as expectations grows for a faster tapering and sooner-than-expected rate hike by the Feds.
The USD’s strength has eclipsed the SARB’s recent decision to hike rates for the first time in 3 years, with USD/ZAR continuing to advance after the lows in June.
News of the Omicron variant and labor issues might spell further trouble for the South African Rand, although this pair is currently flashing an overbought signal on the RSI.
To learn more and get a better understanding of the situation, please take a look at the following article by one of our analysts:
https://www.forex.com/en-us/market-analysis/latest-research/currency-pair-of-the-week/