The dollar continued to consolidate on the downside in yesterday’s session, as it digested the effects of a disappointing inflation data release. Which saw risk appetite invade the market and derailing the dollar’s rally. We saw the dollar closing the day lower than its previous session at 93.956 after it ticked to a low of 93.759 on the day.
The euro held on to its momentum and edged higher in the day to break above $1.16, as the dollar rally’s is slowly dissipating in the market. Although, it closed the day flat at $1.1596.
The pound sterling posted mild gains intraday on the back of a weaker dollar environment and hopefulness surrounding Brexit. The pound ended the day at $1.3672 and reached a high of $1.3672.
The South African rand continued its winning streak for a 3rd consecutive session as the U.S. dollar remained vulnerable, despite the Fed looking to start its tapering in a month. Furthermore, the recent rand gains are also supported by the expectation of the SARB to increase lending rates next month, this is on the back of exceeded expectation of economic recovery in H1 2021. The rand closed at R14.7846/$ after reaching a low of R14.6968/$.
Locally, we are thin on data. Internationally, we have retail sales data in the US, CPI data in France and Italy, amongst others. The locally unit will most likely continue to track global events and other market moving events.
Expected ranges for the day:
- USDZAR: R 14.6500/$ – R14.8300/$
- EURUSD: $ 1.1580 – 1.1620
- GBPUSD: $ 1.3650 – 1.3700
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