International

The US dollar edged higher on the day, also managing to maintain its weekly gains. The dollar was boosted by a strong print of US retail sales data, which pointed out strong economic activities for the month of June. The dollar index rose to a high of 92.756 before ending the session at 92.687 on the day.

The euro continued to nurse some losses on Friday, ending the week on the back foot. The positive US economic data emboldened the dollar on the day, also reaffirming the notion of recovery. The single currency fell to a low of $1.1793 before ending the session at $1.1806.

The pound sterling was amongst the biggest losers on the day, as hawkish remarks from the BoE continued to drag the pound lower, with a strong dollar on the back of upbeat retails data also putting more pressure on the cable. The pound dipped to a low of $1.3764, ending the day at its low.

ZAR

After a highly volatile and eventful week, the rand ended the week relatively firm.  The local unit found some reprieve as unprecedented events of looting and unrest began to subside and clean-up campaigns were initiated.  The rand strengthened to a low of R14.3300/$ on Friday to end the session off at R14.3858/$.

As the affected regions continue to tally the damages to businesses and infrastructure, dented investor confidence remains a cause for concern and as vaccination programs were delayed, an imminent spike in positive Covid-19 cases seems inevitable, which will most likely keep the rand under pressure.

The week ahead is laden with plenty key data releases both locally and internationally.  Locally, investor focus shifts to our consumer price index print on Wednesday and SARB’s repo rate decision on Thursday.

International

The dollar remained on the front foot, rallying in yesterday’s session though with reduced momentum in response to the publication of the Fed’s meeting minutes which noted growing concern and uncertainty with regards to its monetary policy.  The dollar index touched a high of 92.845 to end the session at 92.644.

The euro retreated, posting additional losses at the back of reduced risk appetite. As the ECB sets out to announce the results of its revised inflation target, the euro remained under pressure throughout the day.  The euro touched a low of $1.1780 to end the session at $1.1789.

Pound sterling also endured more losses, as safe haven flows favoured the US dollar over the pound and remained a dominant factor throughout intraday trading.  The pound touched a low of $1.3752 and ended the session at $1.3800.

ZAR

The South African rand traded firmer within a range in yesterday’s early session, but lost momentum intraday as investors waited on the side-lines ahead of the Feds minutes, to close the session at R14.3225/$ after reaching a high of R14.4125/$.

We don’t have any local data due to be released today and internationally we are expecting jobless claims data from the US. The local unit is most likely to remain a passenger driven by global factors.

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