EURZAR is an exotic cross-rate pair, with the highest volatility, which shows the ratio of the euro to the South African rand.
The Euro (EUR) is the official currency of most member states of the European Union and the second most traded currency in the world after the US dollar. Since the single European currency represents the economies of all countries in the Eurozone, its rate is influenced by each of these countries' financial and political performance. When conducting a fundamental analysis of the currency, the economic indicators of Germany, France, Italy and Spain should be considered first as having the most weight in the eurozone economy.
The South African rand is the official currency of the Republic of South Africa. The RSA is a large and most developed country in Africa. South Africa is considered the largest exporter of diamonds and gold. The country is rich in coal, ore, gold, diamonds, and other valuable resources, which brings an impressive income to the South African economy. In this regard, the national currency rate, the rand, is directly dependent on world prices for precious metals and raw materials.
Despite the absence of the US dollar in the pair, it has a significant impact on both currencies. Therefore, to correctly analyze and successfully trade the EURZAR pair, traders should pay attention to such macroeconomic indicators of the US as the interest rate level, the GDP, inflation, The situation in the eurozone and South Africa, without a doubt, should be considered as well. The EUR/ZAR exchange rate is highly volatile, so you can successfully trade the EUR/ZAR pair using short and medium-term trading strategies.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
