Favorites and outsiders of the foreign exchange market

While the foreign exchange market is stagnant, individual instances still manage to please the speculators. According to the results of the trading week, the best results relative to the US dollar showed:
South African rand (+ 3.86%). Cyril Ramafosa, vice president of South Africa, won the election of the head of the African National Congress – the ruling party of the country. Investors positively perceive the figure of Ramafos, hoping that one of the richest people in the country, ultimately, will replace the current president, Jacob Zuma. Technical Zuma may remain president for another 18 months, but analysts at Brown Brothers Harriman say that “if the ANC manages to get him to leave earlier and give way to Ramafos, this will be a good signal for the markets.” However, they believe that the preservation of Zuma’s presidency before the elections of 2019 looks more likely, given the balance of power.
The Chilean peso (+ 2.19%). Growth driver also became a policy – conservative billionaire Sebastian Pinera again won a convincing victory in the presidential election. Prior to that, he was president of the country from 2010 to 2014.
Swedish krona (+ 2.16%). Rixbank kept the repo rate at the level of -0.50%, but formally completed the quantitative easing program, which was in effect for almost three years. To mitigate the transition period, the central bank intends to continue reinvesting redeemable bonds and coupon payments until mid-2019 (for a total of $ 7.8 billion). Such a turn allowed the kroon, which had slipped from the September highs, to strengthen its positions somewhat.
Meanwhile, the list of outsiders was headed by:
Mexican peso (-3.12%). The currency continues to suffer from a corruption scandal, and today has updated the lows. Analysts at Citigroup warn that a combination of uncertainty about the negotiations on the North American Free Trade Agreement and the approaching elections give rise to fears of further weakening of the Mexican currency in the near future.
Argentine peso (-3.11%). After some pause, the dominant downtrend has developed. The political factor also affects: according to the Elypsis poll, the level of government approval after a series of subsidy cuts and reforms in Congress fell to 39% against 53% in mid-October, while the president’s approval rate dropped from 43% to 38%.
Brazilian real (-1.07%). And again politics: the country remains under the influence of corruption scandals, and the prospects for implementing reforms look vague. Uncertainty is also due to the presidential elections, which will be held in 2018, which supports the pressure on the national currency.

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