During the trading day of 22 July 2020, the ZMW Depreciated against the USD by 0.63% from the previous trading day closing at 18.23.

As expected in the previous Days Analysis the technical trading direction of the MACD did push the Kwacha further into depreciation against the USD. There was a bullish cross over during this period which still has some momentum in its favor so the Indicators are show signs of extended depreciation into the 18.20 – 18.30 range and possibly further by the close of the Trading day.

The RSI Momentum indicator is showing a moment in line with the MACD readings has also gone into a full reversal of ZMW depreciation against the USD. Thus the two technical indicators are speaking to the extended days of Losses for the ZMW.

In the global market, the USD is down below the 95 points mark, continuing its losing streak but this does not seem to be affecting the Domestic ZMW – USD market as domestic technical factors are taking control at the moment. The bond market is speaking to the sale continuing as credit spreads between the ZMW Bond Market and the USD Bond market have continued widening and thus no incentive to invest in Zambian bonds and driving down demand for ZMW on the Global Portfolio Fixed Income Market.

In conclusion, Domestic and Technical factors are dominating USD – ZMW trading and the market is still in a prolonged sell-off of the Kwacha leading to Further ZMW Depreciation for the day. The MACD shows signs that the Kwacha will open 18.30 today or it will breach it in the first two sessions before assessing the next phase of movements.