Following the poor economic data, South Africa's enters a Recession.
The
ZA10Y
looks bad, and we are due to get a 0.25bps increase to 6.75% or the Rand will be in a real free fall.
The
SA40
also looks like a sell setup.
Contagion from Turkey and Argentina is also making this "Short" problematic, but for those who wish to sell a "carry trade" asset from the top, its a good place to risk owns funds.
Trade with care.
An update will be on Sep 20, when South African Reserve Bank is expected to hike rates.
P.S
Le`ts hope that the ANC won`t ruin the country with their "Land Reform", after all, who will invest in a country that can just take your land without compensation?
The
ZA10Y
looks bad, and we are due to get a 0.25bps increase to 6.75% or the Rand will be in a real free fall. The
SA40
also looks like a sell setup. Contagion from Turkey and Argentina is also making this "Short" problematic, but for those who wish to sell a "carry trade" asset from the top, its a good place to risk owns funds.
Trade with care.
An update will be on Sep 20, when South African Reserve Bank is expected to hike rates.
P.S
Le`ts hope that the ANC won`t ruin the country with their "Land Reform", after all, who will invest in a country that can just take your land without compensation?
Due to good inflation data, SARB may not hike today, but rather wait for more data and postpone his decision.
info: www.bloomberg.com/ne...-clip-rate-hike-bets
An update will come after the rate decision.