International
The US dollar index edged higher on Thursday, reaching levels last seen in the last week of August. The US dollar was lifted by a strong Retail Sales data print, which quietened lingering concerns over the recovery of the US economy. With the upcoming Fed meeting also continuing to sway sentiment. The dollar rose to a high of 92.964 before ending the session at 92.932.
The euro dipped yesterday, reaching an almost three-week low in the session, as positive economic data lifted the dollar out of the woods. The single currency fell to a low of $1.1751 before ending the session at $1.1775 on Thursday.
It was the same story for the pound yesterday, as was for the euro on the day. The cable also fell victim to the dollar’s aggressive recovery. The pound saw its biggest decline this week, plunging to a low of $1.3765 before ending the session at $1.3792.
ZAR
Momentum remained on the downside for the rand for a 4th consecutive day as the dollar edged higher post upbeat US retail sales figures. The rand depreciated to a low of R14.6246/$ and remained under pressure throughout the session, to finally close at R14.5915/$.
A quiet day ahead on the data front locally, investor focus shifts to the release of UK retail sales data, which we expect will drive the markets.
Expected ranges for the day:
- USDZAR: R14.4500/$ to R14.7000/$
- EURUSD: $1.1760 to $1.1800
- GBPUSD: $1.3770 to $1.3845
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