The dollar gave back some of its previous gains, coming off its recent highs, as CPI data release of 5.4% YoY indicated that consumer prices rose at a slower pace in July, watering down concerns that the FED will put a steady hand on the stimulus. The dollar index ended the session at 92.922, after touching a high of 93.192.

The euro seemingly shrugged off disappointing German investor confidence data which fell to 40.4 from 63.3 points and consolidated on the upside after coming under pressure earlier in the session.  The euro reached a high of $1.1752 and ended the session at $1.1737.

The pound found some reprieve after posting losses for 3 consecutive days and had a relatively good run on the back of the weaker dollar. Pound sterling reached a high of $1.3887 and ended the session at 1.3872.

ZAR

The rand enjoyed the benefits of a weaker dollar and staged a recovery, strengthening to a low of R14.6100/$.  The local unit ended the session relatively firm at 14.6511/$ after touching a high of R14.9029/$.

Majority of emerging market currencies followed the rand’s lead as well, rallying and riding the wave of increased risk appetite as investors sought out high yielding assets.

Locally we expect mining production data today at 11:30, hoping to show some improvement over the last figure of -21.90% YoY in July.  Internationally, we have UK GDP and Manufacturing figures, along with PPI and jobless claims data from the US. The rand will continue to take direction from global market trends.

Expected ranges for the day:

•                         USDZAR: R14.5500 to 14.7500/$

•                         EURUSD: $1.1720 to $1.1780

•                         GBPUSD: $1.3820 to $1.3880