USD/ZAR Monthly Forecast: February 2025 (Chart)

(MENAFN- Daily Forex) The month of January delivered a volatile price range for the USD/ZAR as financial institutions produced higher values not seen since April of 2025, followed by a reversal lower and slightly calmer trading.

A high which tested the 19.25000 vicinity was seen in the middle of January, this as financial institutions showcased their nervousness globally in Forex. The USD/ZAR did correlate to the rather widespread losses seen by other major currencies teamed against the USD. As concerns grew about the implication of the U.S being governed by President trump and potential rhetoric and policy change, USD centric strength certainly showed power.

After reaching apex highs on the 13^th of January the USD/ZAR did reverse lower, and the selling produced was rather consistent until the 22^nd when values around the 18.48000 area were tested. As of this writing the USD/ZAR is near the 18.53375 ratio depending on the bids and asks. Trading the past week has seen choppy conditions as financial institutions still show signs of fragile outlooks.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money U.S Fed Policy, President Trump and South Africa

The USD/ZAR did touch a low in January around the 18.30575 on the 24^th. However, Tuesday the 28^th saw a value in the currency pair traversing higher territory near 18.85000. The past couple of days have seen a downturn again in the USD/ZAR. The selling has developed, even as financial institutions knew the U.S Federal Reserve would not change their Federal Funds Rate on Wednesday of this week. The Fed issued a cautious sounding policy statement yesterday which signaled it does not know when the next interest rate change will be implemented. This was not a surprise and the USD/ZAR has traded rather tranquilly the past twelve hours.

President Trump has started to suggest he believes the Fed should start cutting interest rates more aggressively, but for the moment his opinions have not influenced in the Federal Reserve's decision making. South Africa's financial institutions are also concerned about the prospect of Trump threatening South Africa with some form of tariffs, or sanctions via U.S funding cuts if the Trump administration turns its attention to policy that it does not agree. A bill signed into law recently in South Africa regarding the ability to take property away from land owners without compensation is troubling and could cause problems. Support levels for the USD/ZAR around the 18.50000 level should be watched as an important psychological juncture/ZAR and Calmer Conditions in February

As financial institutions grow calmer with President Trump in the White House, Forex trading should start to see less volatility in February. The threat of suddenly loud rhetoric is problematic, but fundamentals are likely to start becoming a major influence again in the USD/ZAR.

• The ability of the USD/ZAR to correlate with the broad Forex market has rather steadfast since June of 2024, and if this continues it will be a good sign regarding financial institutions and their perspective of South Africa.
• If USD centric strength starts to subside in major currency pairs there is plenty of reason to suspect the USD/ZAR could also move lower and begin to challenge support that was seen before the start of the Christmas season.

EURUSD Chart by TradingViewUSD/ZAR Outlook for February 2025:

Speculative price range for USD/ZAR is 17.98000 to 18.85000

While it may sound too easy to suggest the USD/ZAR will trade according to the mood of global financial institutions, this is the prospect which actually holds the key. The Federal Reserve is not going to change its interest rate policy anytime soon. U.S economic data via inflation will be watched along with employment figures, if these numbers meet expectations this could calm large players in the USD/ZAR and cause some downward momentum for the currency pair. The potential of President Trump causing a storm via rhetoric is significant, but until he does something that focuses on South Africa this should not cause too much trouble.

If Trump gets aggressive with China tariffs that could have a knock on effect with the South African Rand, but it would depend on the amount of noise being generated worldwide. Traders looking for more downside in the USD/ZAR may be proven correct, but they should not be overly ambitious. The wide range of January and apex highs may diminish and a more tranquil trading range could be seen, but risk management in the currency pair remains important. There is a likelihood that the current price of the USD/ZAR is considered fair equilibrium and may see the 18.50000 level tested frequently as a barometer in the coming weeks.

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