Momentum remained subdued for the dollar as investors made room for risk appetite, the dollar traded sideways for most of the session, following its worst week since May. The dollar index ended the day in the red at 92.048 after reaching a low of 91.912.
The euro was little changed post upbeat Purchasing Managers Index (PMI) readings for July manufacturing which indicated an expansion in economic activity. The single currency touched a high of $1.1896 to close the session at $1.1870.
The pound retreated, erasing its earlier gains at the start of the New York session as investors treaded carefully and remained cautious ahead of the BOE’s monetary policy decision. The cable reached a high $1.3932 and closed the session at $1.3881.
The rand and a basket of its emerging market peers started the week on a high, welcoming renewed risk appetite, rallying and posting significant gains through-out intraday trading. The rand strengthened to a low of R14.3675/$ and ended the session at R14.4546/$.
Market participants held tight to the rand’s high yield as optimism returned surrounding economic recovery with the vaccine rollout programs gaining traction.
Very few events on the data cards today, we anticipate major headlines and global factors to continue to move markets.
Expected ranges for the day:
• USDZAR: R14.3000 to 14.5200/$
• EURUSD: $1.1845 to $1.1910
• GBPUSD: $1.3860 to $1.3920
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