USD/ZAR: Long position closed as the rand is well-supported – TDS
|On 21 May, strategists at TD Securities opened a long USD/ZAR position at 17.92, which has now been stopped at a 2.6% loss.
Key quotes
“While the rand is trading on the brink of USD/ZAR oversold levels from an RSI point of view, the rand continues to receive strong support from the market.”
“We close the trade at 17.45 with a loss of 2.6% or $26k on a notional of $1 million. Given the ca. 29bps/ month of negative carry the position has generated, carry adjusted P&L stands at -2.67% or -$26.7k.”
“We will not be looking to re-enter the position anytime soon despite our bearish rand forecast for this year, unless market conditions swiftly change in a more bearish direction.”
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