After dipping on the day, the dollar managed to recover, scooping some gains to end session firm on Friday. The US dollar index rose on the back of rising US treasury yields, amongst other things. The dollar posted marginal gains, ending the session at 92.582, following a low of 92.330.
The euro edged lower to end the week on Friday, as global markets further digested the ECB’s decision to leave interest rates unchanged once again, along with their intent to reduce the pace of asset purchases. The single currency fell to a low of $1.1810, also ending the session at the day’s low.
After rallying to a week’s high, the pound sterling struggled quite a bit to maintain its earlier gains, as we saw it retreating post-economic data. The cable rose to a high of $1.3888 before pulling back to end the session marginally weaker at $1.3831.
The rand edged higher in Friday’s session, bolstered by increased risk appetite, despite poor local manufacturing data. The rand strengthened to a low of R14.0571/$ and ended the session relatively firm at R14.1983/$.
The rand managed to shrug off the disappointing manufacturing data which printed -8% MoM and -4.1% YoY, both below market expectations, to post its third consecutive week of gains.
No data is expected on the cards today both locally and internationally, we expect the Rand to take its direction from global events and Covid-19 headlines
Expected ranges for the day:
• USDZAR: R14.1000/$ to R14.3000/$
• EURUSD: $1.1750 to $1.1820
• GBPUSD: $1.3860 to $1.3780
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