The dollar gave back some of its previous gains and eased, making no significant moves as risk appetite improved and previous surging fuel prices abated. US jobless claims which fell to 326 000 did little to lift the dollar from its rut. The dollar index ended the session relatively flat at 94.217.
The euro slightly recovered from the previous session’s sell off but remained sluggish throughout intraday trading as risk sentiment failed to find a sweet spot. The euro ended the session at $1.1550 after reaching a high of $1.1571.
The pound retraced some of its previous losses and took advantage of the softer dollar. The cable found support from a rebound in risk following hawkish comments from the BOE which reigniting taper talks. The pound traded to a high of $1.3638 and ended the session at $1.3617.
The rand found some reprieve and benefitted considerably as risk-on sentiment was brought back to life and dominated global markets. With investor appetite mostly geared towards riskier assets, the rand strengthened to a low of R14.8125/$ and ended the session at R14.9300/$.
No data is on the cards locally, the closely watched U.S. non-farm payrolls due this afternoon, will be the main headliner, the rand will most likely take its direction from other global events as well.
Expected ranges for the day:
- USDZAR: R14.80$ to R15.15$
- EURUSD: $1.1515 to $1.1600
- GBPUSD: $1.3570 to $1.3650
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