Why does this pair seem to run inversely to dollar strength. Look at the day charts of the majors and then compare it to the usdzar. This pair is much less volatile than the majors but still trends in the opposite direction. What are the fundamentals for this?
The spread may be large on usd/zar but look at the pip value for a full lot 1 pip only equals around $1.40 so the spread is not as bad as it seems its still large though.
I am talking about recent trends. Lets take a specific example. Look at the USDCHF vs USDZAR. On the day charts from June 13 to today the USDZAR is almost straight down. The USDCHF though has a v shape. This I think would be defined as more volatile than the ZAR.
You gotta be kidding. I think you know what I am talking about. The ZAR has been straight down while other dollar pairs have traded in the opposite direction. But, they have not gone straight up, call it whatever you want. I am only interested in why this appears to be happening.
Compare AUDUSD to USDZAR and tell me what you think? Doesn’t it appear these two are trading on opposite philosophies? I mean audusd show dollar strength and usdzar shows dollar weakness? Why? Can’t be gold.
Gold chart is in absolute correlation with AUDUSD since june 13, the USDZAR is the direct opposite…until the last three days. But, wouldn’t you have to say that the gold factor has been overridden the last two months?
Finally, after like four posts, you mention the rate hikes and inflation. Thank you, that was the answer we all could have used days ago. If that is pissing on your battery, then so be it. I am an American, we are a superpower, you are lucky I am even talking to you.
Now, go be safe I know it is very dangerous in Joberg. You are likely to be carjacked any day now.
USDZAR has such a big spread, I think its not worth your effort analysing it.
I agree with you for trading purposes but I am curious as to why is diverges with all other USD pairs, at least for the most part. I am not looking to trade it, I travel to South Africa often so it is of some interest to me.
I am a little frustrated that I couldn’t get a decent answer on this forum. It seems like a very legit question to me.
Maybe I should just move on, I don’t seem to be welcome here and I don’t want to be a trouble maker.
Dale already told you. Interest rates.
Then you come out with that childish rant about being a superior American crap. Which Pipcrawler done flushed down the toilet. Do you think you would be welcomed after that childish backlash at someone trying to help you?
Maybe it is time to move on.
ZAR is a third world currency.
Not worth analyzing and
not worth trading. Not
worth the risk/reward. Spread sucks.
Ya, third world currency.
Gold taking a dump. Oil taking a dump.
You dont know what your talking about they are the most developed country in Africa next to Kenya. 70% of the worlds legal diamonds come from South Africa. The income per person is higher than Russia and China put together. Check your facts first. your right about one thing the spread sucks.
All I have seen is his gold answer. Which doesn’t make sense to me. But I was obviously asking questions. He started with the piss on my battery nonsense. Like he is above being questioned. I admittedly do not understand but it doesn’t sound like he does or you do either.
It seems just as childish to jump into it without contributing something of value. What do you think he is gonna invite you into the babypips key club?
[B][I][U]Interest rates[/U][/I][/B].
Not only is that Dale’s country but one of his most traded currencies. I can only look at interest and tell you what I see that is obvious.
Your rant was childish and not a great ambassador of our country.
If you can’t get an answer to you question done to your exact expectation, who’s more to blame, yourself or the one helping you.
But oh well, welcome to the forum.
OK, I apologize to you and him and the rest of the forum. I thought he would get the joke. But I still don’t understand you or his answer to the question.
You are saying interest rates but what does that mean? I understand carry trade but I need more explanation to understand why they apply here.
Will you or someone please help me understand this better? That is as nice as I can ask and I am sincere.
I would if I could, but I honestly don’t know anymore than that. If we could all explain every move of every currency, we could all predict 100% of the time the moves they make. Which will never happen in any of our lifetimes.
I am not a zar or any other exoctic guy. The most informed person on this forum on the zar is Dale. If he doesn’t 100% know, than nobody does. But that is expected or this game we call forex would make everybody instantly rich and no one poor. So there would never be another side to the trades and price would just stay flat for eternity.
Try keeping up with South African fundamentals as much as you can. Then maybe you will find the edge you are looking for.