vrijdag 7 maart 2008

Rand collapse


eu-rand-3jaar
Originally uploaded by twobombs
Look and see the South African market losing 45% value in 2.5 years: its the Euro/Rand 2.5 Year - with the red line as 50 days average.

Good news: somewhere along the line this situation will stabilise

Bad news: it'll get worse before that level will be found

After level is found and sustained chances are it'll once again collapse to the R14-15 range. Get used to a Rand thats 'cheap'.

The Euro will also get stronger. Hope for the ailing Rand and SA economy is a cheaper dollar; which is also on the charts; flickr.com/photos/twobombs/2315684857/

Update: the 100 & 200 day average are also pointing north.... which means that the Rand will go down to the 14-15R against the euro even sooner and on the longer term even more, Real Soon Now(c). Additional source

This coin is definately broken.

Update 2:

http://www.moneyweb.co.za/mw/view/mw/en/page66?oid=198180&sn=Detail

Quote:

....inflationary pressure from necessary power price rises along with the real risk of a currency collapse will prevent the central bank from cutting rates. Clearly this bear case does not touch upon the upcoming social upheaval from Zuma taking power. Sadly I think there is enough to worry about even without that.

repeat : " real risk of a currenly collapse "

Additional linked document:
http://www.moneyweb.co.za/mw/action/media/downloadFile?media_fileid=3244

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