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ZAR expected to remain under pressure – Danske Bank

Valtteri Ahti, Chief Strategist at Danske Bank, gives his view on the recent developments around the South African Rand.

Key Quotes

“In the EM space, the USD/ZAR increased by more than 3% yesterday after real GDP figures showed the South African economy remained in recession in Q2”.

“The weak GDP numbers added to the negative sentiment against the ZAR, which has been under pressure recently due to contagion from the crisis in Turkey and Argentina and a stronger USD”.

“We expect the ZAR to remain under pressure in the coming weeks with possible escalation of the global trade war and general emerging market pressure”.

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