South Africa Interest Rate Sept 23 2021-min

South Africa Interest Rate

In Trade Plans by CathyLeave a Comment

  1. What Does The Data Mean To The Market?
  2. Historic Deviations And Outcome
  3. Trade Plan
  4. Tradable Pairs

1.
What Does The Data Mean To The Market?

Higher interest rates are great for the value of the currency. Therefore, higher interest rates will create a BUY on ZAR Pairs and vice versa.

We see deviations often. We have seen four deviations since November 2018, which is excellent from a bi-monthly report.

2.
Historic Deviations And Outcome

April 2020 – We had a surprise cut of 1.5%, it was unscheduled, and the market wasn’t ready to react. We don’t have a chart for this, as it’s an infrequent scenario.

March 2020 – An excellent cut of -0.50 gave a 1600 pip move over 3 mins. Not on the chart the data arrives 9 mins late, so the chart time is 13.09

Check out the price action here (Click the image to see the full chart):

3.
Trade Plan

If we see a -/+ 0.25 deviation in either direction, then we can expect the market to go into shock, I would target a total move of at least 800 pips which should provide multiple opportunities to enter and bank some nice pips.

4.
Tradable Pairs

  • USDZAR

Hope this helps but please do your own analysis!!

Good luck!!

James Thatcher

Another shock to the markets today was when the highly anticipated cut to the Turkish interest didn’t happen; the markets quickly revalued the Turkish Lira’s value.

We saw a whopping 2000 pips in a few seconds: what a lovely move, a great trade.

See the video here:

https://youtu.be/u0RuBKpydfk

Hi, I’m James, born in 1979 and grew up with a strong interest in IT and business. My first career was in IT support, which lasted 12 years before selling my company in 2009. I decided to move abroad and do something new! Forex caught my eye. I did the typical rookie thing of opening a real account, depositing far too much of my savings, and lost a small fortune. Although this experience was very negative at the time, it taught me some tough lessons that I still benefit from today. News events caught my eye; the patterns in the charts they created were repetitive and often predictable. I knew that if I could understand them more, I could make accurate predictions about how they would move. So I spent much time developing my trading method around thousands of hours of research and data. Now many years of trading around news events have earned me a good income, one that I’m sure others can benefit from.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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