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

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

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
Trump’s reciprocal tariffs plan targets India’s trade surplus and key industries

Related Posts

Milei’s tax amnesty program brings $18 billion to...

November 3, 2024

Stargate Project: groundbreaking AI infrastructure or empty hype?

January 23, 2025

Israeli military presents plan for evacuating Gaza’s population...

February 27, 2024

Sierra Leone outlaws child marriage with new bill

July 3, 2024

‘The entire town is burning.’ Fires rage as...

May 24, 2024

More than 670 people feared dead after Papua...

May 28, 2024

The war in Ukraine in 12 key moments

February 25, 2024

Navalny will be back, but only after Putin’s...

March 3, 2024

Why does Trump want Greenland? The geopolitical power...

January 11, 2025

‘It’s a dolphin!’: Researchers uncover unusual ancient fossil...

April 1, 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

    • Oil jumps 2% as OPEC agree to smaller output hike for October, sanction threats looms

      September 8, 2025
    • Weekly recap: tech titans woo Trump, Xi’s political theatre, Starmer’s reshuffle

      September 7, 2025
    • Trump reaffirms backing for Robert Kennedy amid vaccine policy turmoil

      September 7, 2025
    • South Korean president promises aid to citizens held in US immigration raid

      September 7, 2025
    • Tim Cook’s repeated ‘thank yous’ at Trump’s White House dinner go viral

      September 7, 2025

    Categories

    • Business (3,944)
    • Investing (2,859)
    • Latest News (2,058)
    • 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