Bounced off strong resistance. Pullback to zones indicated.
South African 10Y bonds have bounced off strong resistance. Likely to pull back to zones indicated by arrows.
Under these circumstances, this will be ZAR negative, putting an end(or pause) to the rand's rally since the begging of April.
It is also to be noted that COT positioning among non commercial traders for the ZAR is up by 3000 long and down 2000 short contracts vs last week.
Keep an eye on strong divergences between the 10Y bond and 10y bond yield. This is often(not always) precursor to currency strength or weakness.
Under these circumstances, this will be ZAR negative, putting an end(or pause) to the rand's rally since the begging of April.
It is also to be noted that COT positioning among non commercial traders for the ZAR is up by 3000 long and down 2000 short contracts vs last week.
Keep an eye on strong divergences between the 10Y bond and 10y bond yield. This is often(not always) precursor to currency strength or weakness.