International
The dollar index pulled off an impressive performance in yesterday’s session, touching levels we haven’t seen in more than a year, continuing to find support from rising yields as anticipation of the Fed tapering invigorates the market. Also, with investors waiting on the side-lines ahead of the inflation data released this afternoon for further clues and direction, aiding the dollar. The dollar closed the session at 94.525.
The euro remained pressured and continued to take a beating from a stronger dollar environment, as investors sought for safety in the havens amid concerns surrounding inflation and a rise in energy prices. The single currency closed the session at $1.1530 and reached a low of $1.1522.
The pound managed to trade firmer in its early activities despite disappointing employment release, but struggled to stay afloat for the latter part of the day. The cable closed the session slightly lower at $1.3589 after reaching a high of $1.3635.
ZAR
The rand tracked firmer in its early activities on Tuesday ahead of local economic data that was due later in the session. However, when the mining production data was released later in the morning, the market was shaken up and the local unit was seen losing momentum, as the data came in at 2% and missing the mark by -4%. Although, we saw the rand getting lifted again, as manufacturing data printed above market expectations, coming out at 7.6% for the month of August. The local unit reached a low of R14.9049/$, before ending the session at R14.9755/$.
We have Retail Sales data on the local front today. Internationally, there is a range of data from the U.S., Eurozone, and the U.K. The rand will most likely take direction from global trends and other market moving events.
Expected ranges for the day:
- USDZAR: R 14.9000/$ – R15.1000/$
- EURUSD: $ 1.1535 – 1.1575
- GBPUSD: $ 1.3570 – 1.3640
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