USDZAR

The USDZAR currency pair belongs to the category of exotic trading instruments on Forex, so traders rarely use it in their trading.

The disadvantage of working with exotic instruments is the presence of a large spread, and if we talk about USDZAR, its value usually ranges from 15 to 30 points depending on the broker on four-digit quotes.

USDZAR consists of two independent currencies, namely the American dollar and the South African rand.

Moreover, judging by the configuration, we buy dollars for rands, and not vice versa as is the case with major currency pairs.

The currency pair is very specific and does not have very high liquidity, but at this stage it is very attractive to investors and I will try to explain why. In order to understand what motivates a currency pair, let's take a closer look at each of the currencies separately.

The dollar is the most liquid currency, the main owner of which is the United States of America. At this stage, the dollar is the number one currency in the world ranking in terms of cash turnover. Almost all countries in the world keep foreign exchange reserves in the dollar in order to protect and preserve the stability of their states.

From year to year, a number of analysts constantly argue that a crisis will soon come in the United States, and the dollar will lose its position in the world rankings to the more stable Swiss franc. However, the entire world economy is tied precisely to the dollar, all relationships between states, international loans, payments for oil, gold and any precious mineral are sold in the dollar.

Despite the fact that at this stage the dollar is simply not backed by gold reserves, contrary to all forecasts, it remains a world currency and will remain so. The United States has one of the strongest economies in the world, the deterioration or improvement of which greatly affects the exchange rates of many countries. The United States maintains a strong relationship with Europe, so the weakening of the European economy directly affects the strengthening of the dollar.

If we talk about the factors that influence the dollar exchange rate, there are a lot of them. The main driver of the currency is considered to be the country's fundamental indicators, such as GDP, unemployment rate, inflation, reports on economic sectors, and employment. One should not ignore the fact that the United States has a large sphere of influence in the world community, so various statements by the country's main officials move dollar quotes with great force.

If we talk about the trend of the dollar's movement this year, then its indicators are smoothed out not by economic factors, but by political ones. Despite the fact that you can find a lot of forecasts for the dollar, in reality it is an unpredictable currency, and dozens of different indicators a day can change your forecasts as many times. However, the relationship between the dollar exchange rate and the price of oil is very visible, since the United States is its largest consumer.

ZAR is the national currency of South Africa. South Africa is the richest country on the African continent due to the fact that the country has large deposits of precious minerals. Moreover, speaking of precious ones, I had large deposits of gold and diamonds, of which they themselves have more in the world.

Therefore, the ZAR rate directly depends on the demand and price of precious metals. Do not forget that South Africa has a strong engineering industry, the products of which are sold throughout the African continent and to other continents. Therefore, indicators in the field of mechanical engineering also greatly influence the course.

In conclusion, I want to argue why this currency pair is of interest to investors in the first place. If you look at the price movement chart, you will clearly see that since 2011 there has been a protracted bullish trend, which is based on the strengthening of the dollar, as well as on the weakening of the South African economy.

Therefore, despite the large commission of brokers, it is very profitable to hold a buy position for a long period, which is typical for an investor. From 2011 to the present day, the price has overcome an upward distance of 70 thousand points, which, with a competent approach to investing, could bring you simply mind-blowing profits. You can always find out the quote and spread size for USDZAR here http://time-forex.com/kotirovki