How to take advantage of the volotility caused by the national strike in South Africa.

On the 24th of August 2022 the Cosatu and the Saftu plan on executing a national strike within South Africa for the sake of protesting the current sitting government and the state of the South African economy. This came on with the onset of mounting negative perception of the sitting president with his Phala Phala investigation underway and the recent inflation that has devasted the country. Today we are going to talk about what kind of impact this will likely have on the ZAR markets and how to take advantage of this volatility as a trader.

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Why are people striking？

Cosat and Saftu are calling for all none essential workers to strike nationwide in South Africa so as to call the attention of the government. People are protesting the current state of the debilitating economy and the current mismanagement of the country by the current governing party. These people are seeking the government to do something substantial in order to deal with the issues people are facing and alleviate the stress that inflation and rising costs of living are causing

How will the Strikes affect the Zar？

As there is going to be a strike it will essentially mean there will slow in economic activity. A strike on a national scale is bound to have an effect on the companies which are dependent on labor to function. There are a number of services that support the economy of South Africa, so any negative impact on these industries as a whole is like like to have reverberating effects on the rest of the economy.

The may be no long-term sustained volatility in the markets, however, there likely is going to be short-term volatility on Zar pairs as the national events which are taking place have economic and trade implications. As traders, we should be on our toes as these events unfold as these are likely to reflect in the markets. Do leave positions open without no stop loss and be sure to take profits on winning trades as the volatility may spike you out. But because the events taking place are not so positive we can assume that the Zar will be losing value, so expect to short the Zar on your relevant instruments.