The dollar retraced its previous losses after the release of stronger than expected producer prices which surged to their largest annual increase in July. PPI increased 1.0% in July, leaping to a record high of 7.8% in over a decade. The dollar index rose to a high of 93.035 where it ended the day.
The euro traded broadly flat, remaining range bound throughout the day as markets digested the upbeat economic data release. The euro ultimately fell victim to the stronger dollar though, reaching a low of $1.1724 before ending the session at $1.1730.
Pound Sterling reversed Wednesday’s gains yesterday as the stronger dollar put pressure on the pound. The pound reached a low of $1.3795 and closed the session at $1.3808.
The rand lost its footing and traded weaker as the dollar strength bolstered talks of stimulus tapering. The rand depreciated to a high of R14.8040/$ and remained under pressure throughout intraday trading to end the session at R14.7780/$.
No data is on the cards locally and very few international events, we anticipate Covid-19 headlines and global factors to continue to move markets.
Expected ranges for the day:
• USDZAR: R14.6500 to 14.8500/$
• EURUSD: $1.1720 to $1.1760
• GBPUSD: $1.3760 to $1.4860
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