EUR/ZAR is quite popular on Forex. South Africa is an active European Union trading partner. Thus, EUR/ZAR attracts experienced traders who choose this instrument for high stability and predictability of the euro area and South Africa economies. Most of operations on this currency pair are carried out during the European session.
EUR/ZAR is greatly affected by the U.S. dollar as it represents a cross rate against the greenback. Hence, by combining the EUR/USD and USD/ZAR price charts, we can get an approximate EUR/ZAR chart.
The U.S. dollar has a significant influence on both currencies represented in EUR/ZAR. To correctly predict the further currency pair movement, it is necessary to take heed of such U.S. indicators as the discount rate, GDP, unemployment, new created workplaces, and many others. However, the currencies can respond differently towards the changes in the U.S. economy, therefore, EUR/ZAR currency pair may serve as a specific indicator for these currencies.
South Africa is the richest country in mineral deposits in Africa. It has one of the largest stock exchanges, which is among the ten largest world stock exchanges. South African's economy is based on the extraction and export of minerals.
South Africa has produced a large number of precious stones and metals, including gold and diamonds. In addition, the country is the largest car manufacturer in Africa. South Africa has all the necessary raw materials for production. For this reason, prices for precious stones and metals, and car manufacturing can greatly affect the South African Rand exchange rate.
If you trade cross rates, it is necessary to remember that brokers , usually, set a higher spread on crosses than on majors. So before you start working with the cross rates, familiarize yourself with the terms and conditions offered by the broker to trade with the specified instrument.