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.
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):
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.
Hope this helps but please do your own analysis!!
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:
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