Financial markets move for technical and fundamental reasons. Fundamental analysis is usually worth more than technical analysis for stocks. But for the forex market, it may be different. In any case, economic news impacts the forex market, as the overall market needs a reason to move. And that reason is most often connected to economic news.The forex market is made up of currency pairs, which reflect the value of one currency in terms of another.
But the next question should be: against what currency will the ZAR depreciate? Remember that in a currency pair, if one currency depreciates, the other one must appreciate. What moves the currency market? Interest rate changes are the first thing to look for. Central banks have a mandate, and it is focused on price stability. Economists have agreed that a certain level of inflation is good for constant economic growth, so inflation is part of every central bank’s mandate. If the prices of goods and services deviate from the targeted level, the central bank steps in and hikes or cuts the interest rate.
Also, local economic data, such as the GDP, the unemployment rate, or business surveys, may impact the local currency.