The dollar experienced a fairly quiet day yesterday, dipping slightly at the end of the day but not by much as market participants keen an eye out for the Non-Farm payrolls data print this afternoon. The dollar index reached a low of 92.115 before ending the session at 92.244.
The euro remained marginally unchanged yesterday after spiking first thing in the morning because of positive economic data. The single currency initially reached a high of $1.1857 ultimately ending the session at $1.1834.
The pound continues to show resilience, moving back above $1.39 on the day yesterday as optimism on increased economic activity kept the pound buoyed. Cable reached a high of $1.3949 and closed the session at $1.3931.
Ending weeks of speculation, President Cyril Ramaphosa reshuffled his cabinet last night. With the resignation of former finance minister Tito Mboweni, the president’s appointment of a new finance minister Enoch Godongwana rattled markets overnight and sent the rand reeling to a high of R14.7161/$.
As markets continue to digest the news of the newly appointed finance minister and investors questioning whether the appointment signals a dawn of a new era for the fiscus, the rand remains under pressure, as uncertainty lingers in the market.
The rand was not alone in its losses though, with emerging market currencies across the board falling in intraday trading as global risk off sentiment returned in the market on the back of surging delta variant positive cases and its effects.
The economic calendar is abuzz with activity, with the highly anticipated US non-farm payrolls due this afternoon, which we expect will drive the markets.
Expected ranges for the day:
- USDZAR: R14.4000 to 14.8500/$
- EURUSD: $1.1750 to $1.1800
- GBPUSD: $1.3800 to $1.4000
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