USD/ZAR will continue to move higher in the following days

The pair will continue to move higher in the following days and break out from its previous high. South Africa was able to flatten the curve of its coronavirus cases. However, the World Health Organization provided a grim outlook on the African region. The WHO said Africa might experience a rise of coronavirus cases up to 10 million in the next 6 months. Despite flattening the curve, the country hasn’t initiated mass testing which could trigger a second wave of coronavirus cases. The country’s economy could also deteriorate as major businesses suffer losses during the lockdown. Furthermore, it’s large exposure to the Chinese economy and the yuan could slow down the economy. The US, on the other hand, is countering the economic effect of COVID-19 through economic stimulus. The US government unveiled a $2 trillion package to aid the economy. Meanwhile, the Federal Reserve unveiled the largest stimulus in history at $2.3 trillion.