The USD/ZAR currency pair gained on Monday, with the Rand retreating from recent highs, as US President Donald Trump’s new tariff threats over Greenland weighed on broader risk sentiment.
Trump said over the weekend that the US would implement a wave of increasing tariffs on European allies until it is allowed to acquire Greenland.
Trump said the US would impose 10% tariffs on imports from several EU countries, the UK and Norway, which will take effect on February 1st.
EU ambassadors agreed on Sunday to bolster efforts to dissuade Trump from imposing tariffs on European allies. But, in case the levies were imposed, the EU would respond with retaliatory measures, European Union diplomats said.
“For the ZAR, this will leave the local unit on the defensive this morning. That sentiment may further compound in the trading sessions ahead, depending on the nature of negotiations and rhetoric between the U.S. and the EU over Greenland,” ETM Analytics wrote in an investor note.
Rand traders will additionally be paying close attention to local CPI inflation figures, due on Wednesday, for fresh clues over price pressures within Africa’s most industrialized economy and the South African Reserve Bank’s policy trajectory.
The USD/ZAR currency pair was last up 0.43% on the day to trade at 16.4711.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
