Last week, US President Trump met with South African President Ramaphosa and spoke strongly about the treatment of white farmers in South Africa. Whether true or not, this may hurt South Africa’s relationship with the US, its second-biggest trading partner after China. This could be bad for South Africa’s economy.
Also, the South African central bank (SARB) will meet this week. People expect the bank to lower interest rates by 0.25%, the first time since January. Inflation is now 2.8%, which is lower than the target range of 3–6%. This means there could be more rate cuts in the future.
At the same time, people think Japan might try to stop the weak yen, so the yen is being bought more. Because of this, the South African rand may keep going down against the yen.
This week’s expected range for ZAR/JPY: 7.80 – 8.08
Note: This is not a guarantee of profit. Please make your own decisions when trading.