American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

USD/ZAR forecast: wedge forms ahead of Fed, SARB rate decisions

by admin March 17, 2025
March 17, 2025
USD/ZAR forecast: wedge forms ahead of Fed, SARB rate decisions

The USD/ZAR exchange rate retreated on Monday morning as tensions between the US and South Africa rose. It dropped to a low of 18.20, 5.40% below the highest level this year as focus shifts to the upcoming Fed and South Africa interest rate decision. 

US and South Africa tensions

The US and South Africa are in a bitter feud that may have major implications in the future. The root cause of these issues is a lawsuit that South Africa filed in the ICC against Israel.

In January, Donald Trump accused South Africa of discriminating against the white population after a bill on land issues passed. The bill made it legal for the US to take largely unused land and pay a fair price. 

These tensions escalated during the weekend as Secretary of State Marco Rubio declared that South Africa’s ambassador to the US, Ebrahim Rasool, was not welcome to the United States. He called him a “race-baiting politician who hates America and Trump.”

There is a risk that the US will implement some tariffs or sanctions against South Africa. Such a move would disrupt trade volumes worth over $25.5 billion annually.

Fed and SARB interest rate decision

The next key catalyst for the USD/ZAR exchange rate will be the upcoming Federal Reserve and South Africa Reserve Bank (SARB) interest rate decisions. 

Economists expect that the Fed will leave interest rates unchanged at 4.50%. It will then maintain the view that it will not be in a hurry to cut interest rates until inflation moves towards 2%.

The Fed is concerned that Donald Trump is engineering a self-inflicted recession by implementing tariffs. As a result, the Atlanta FedNow data estimates that the US economy will contract by about 2.4% this month. 

The Fed is also concerned about inflation. While last week’s US inflation report was encouraging, it did not include Trump’s tariffs. Analysts anticipate that inflation will reman high as companies adjust for tariffs.

The USD/ZAR exchange rate will also react to the upcoming South Africa interest rates. Recent data showed that the country’s inflation has risen in the past few months. It jumped to 3.2% in January, the highest point since September last year.

The country’s statistics agency will publish the latest inflation data on March 19, and analysts anticipate the figure to come in at 3.4%. 

USD/ZAR technical analysis

USDZAR chart by TradingView

The daily chart shows that the USD to ZAR exchange rate has come under pressure in the past few months. It dropped from a high of 19.218 in February to the current 18.20. This decline happened as tensions between the US and South Africa rose. 

The pair has formed a falling wedge chart pattern, which is characterized by two falling and converging trendlines. These two lines are now nearing their confluence levels. 

The USD/ZAR pair has formed a bullish pennant pattern too. Therefore, there is a likelihood that it will bounce back and possibly hit the key resistance level at 19.21, its highest level this year, which is about 5.6% from the current level.

The post USD/ZAR forecast: wedge forms ahead of Fed, SARB rate decisions appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
USD/JPY forecast: signal ahead of FOMC and BoJ decisions
next post
Micron stock price forecast: will it rise or fall after earnings?

Related Posts

Gold price forecast: triangle forms ahead of FOMC...

January 29, 2025

US to Invest Over US$6 Billion in Clean...

March 27, 2024

As the ZipRecruiter stock price implodes, will it...

December 22, 2024

Here’s why the Meituan share price is rising...

July 21, 2025

Cardiex Completes HEARTsense Wearable Study and Secures US...

April 3, 2024

CVS Health stock price rises after Walgreens earnings:...

January 13, 2025

IOTA price crashed after Rebased upgrade: will it...

July 5, 2025

Heritage Mining – 2023 Program Update & Six...

February 15, 2024

Red alert: Axon stock price has formed a...

May 13, 2025

Here are the best and worst CAC 40...

November 15, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved