The U.S. dollar index had a good start to the day in yesterday’s session, as prospects of asset tapering from the Fed continued to be at the root of dollar gains. However, later in the day the dollar retreated from its gains on the back of disappointing jobless claims data. The dollar closed lower from the previous session at 94.230 after reaching a high of 94.503.
The euro traded within a range on Thursday to end the session weaker, regardless of the dollar slipping later in the session. The euro hit a low of $1.1564 and closed the session at $1.1580
The pound made a slight recovery following the U.K’s GDP data coming in better than expected at 5.5%, despite the current fuel crisis that weighed on the pound earlier in the week. The pound also benefitted from a softer dollar environment, reaching a high of $1.3517 to close the session firmer at $1.3477.
The rand found some reprieve and posted marginal gains as the dollar edged lower in yesterday’s session and was further buoyed by upbeat local PPI data, trade balance data and credit growth figures. The local unit strengthened to a low of R14.9775/$ and finally closed at R15.0884/$.
Local PPI printed 7.20% slightly better than markets expectation of 7.05%. A strong trade balance print of R42.4 billion with August exports increasing by 9.7% MoM also bolstered sentiment and eased the pressure on the rand. Private sector credit figures also came to the party rising by 1.12% YoY in August.
No local data is on the cards today, we anticipate global factors and international data releases to drive markets.
Expected ranges for the day:
USDZAR R15.00/$ – R15.20/$
EURUSD $1.1560 – $1.1600
GBPUSD $1.3440 – $1.3500
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