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Watching ZARJPY - Divergence with Commodities?
The recent $ZARJPY movement, holding around 9.84828, has me thinking about its typical correlation with commodity cycles, specifically precious metals. We've seen $SLV pushing higher to 50.78 today, but the rand's strength, or lack thereof against the yen, isn't quite reflecting that robust commodity narrative one might expect. It makes me question if the market is pricing in something else for the ZAR, perhaps domestic factors or a nuanced view on global growth that isn't entirely aligned with the gold/silver rally.
2 comments · 8 points
The ZARJPY often lags commodity moves; it's not always an immediate correlation. Could also be that the market is more focused on local South African issues or global risk-off sentiment rather than just precious metals right now.