SocGen Maintains USD/ZAR Rally Selling Strategy Ahead of Key Data
Societe Generale strategists say the South African rand’s direction depends on upcoming CPI and retail sales data, as well as the Federal Reserve’s next move, keeping the USD/ZAR rally-selling strategy in focus.
Strategists at Societe Generale reiterate a rally-selling approach for USD/ZAR, noting that the South African rand is at a pivotal point. The pair’s near-term path hinges on upcoming domestic data releases — CPI and retail sales — as well as the outcome of the next Federal Reserve policy meeting.
According to the note, these events will determine whether the current USD/ZAR uptrend has further room to run or if a reversal is imminent. The bank advises using any further strength in the pair as an opportunity to initiate short positions, reflecting a bearish bias on USD/ZAR.
Source: FXStreet Forex News