EUR/ZAR Forex Rate Down on Lockdown Ease
The Euro to South African Rand exchange rate was down by -0.5% today. The pairing is currently trading in forex around 20.47.
The South African Rand gained today after South Africa’s President Ramaphosa announced he would begin easing the nation’s coronavirus lockdown.
As a result, ZAR investors reacted positively to South Africa’s potential economic recovery. May 1st is the set date to see Ramaphosa’s five-level lockdown easing plan put into action.
John Steenhuisen, the Leader of South Africa’s Democratic Alliance said this phased, risk-adjusted model, whereby restrictions are lifted. As and when the data suggests it is safe, is critical to protecting precious jobs. Also in ensuring that the livelihood of millions of South Africans is saved.
The rising oil prices have also uplifted the risk-sensitive ZAR. This was after Kuwait said they would cut output.
Moreover, the US’ passing of a $483 billion stimulus plan has also provided a boost for global market sentiment.
Meanwhile, in forex news, the euro fell below forecasts from 85.9 to 74.3. This came after the release of April’s German IFO Business Climate report.
German business sentiment has fallen to its lowest level ever recorded. Single currency investors are becoming increasingly anxious about the Eurozone’s economy going forward.
EUR/ZAR Forecasts the Euro to Continue Falling
Euro investors brace for Monday’s European Central Bank Lending Survey. They predict if this is notably downbeat due, then we could see the single currency continue to fall.
The South African Rand will remain sensitive to global risk sentiment. However, should global market mood turn sound, the currency will begin to shed some of today’s gains.
The EUR/ZAR exchange rate could begin to rise early into next week. This is as global risk sentiment is likely to sink while coronavirus continues to drag down the world’s economies.
Meanwhile, in forex trading, U.S. dollar South African Rand trades around 19.01 levels. Thus making intraday high at 19.18 and low at 18.97 levels. Intraday bias remains neutral till the time USD/ZAR holds key resistance at 19.08 mark.
Furthermore, a daily close above 19.08 will the parity higher towards key resistances around 19.18, 19.32, 19.54, and 19.77 marks respectively.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!