International

The US dollar edged lower in Friday’s session as risk-on sentiment weighed on the currency, despite upbeat retails sales data  which rose by 0.7% in the previous month and ultimately boosting risk appetite on the day.  The dollar index touched a low of 93.847 and ended the session at 93.937.

The euro posted marginal gains on the back of a broadly weaker dollar and managed to consolidate on the upside as investors’ appetite veered towards the common currency as their safe haven.  The euro traded a high of $1.1619 and ended the session at $1.1600.

The pound extended its gains and rallied against both the dollar and euro, remaining better bid, as flow favoured the cable on the day. The pound continued to shrug off stagflation jitters and the lingering possible monetary policy tightening.  The pound showed some resilience and ended the session firm at $1.3749 after reaching a high of $1.3773.

ZAR

The South African rand continued to strengthen on Friday on the back of a softer dollar, coupled with lower demand for safe-haven dollar on the day. Moreover, the market expectation that the SARB will most likely announce an increase in its benchmark  interest rates in their November’s monetary policy meeting also continued to underpin rand flows. The rand closed at R14.5943/$ before touching a low of R14.5843/$.

The past week’s multifaceted local economic data did not tarnish the rand gains but revealed the uneven effect of the COVID-19 pandemic on the economy thus far. However, the COVID-19 vaccination drive is now extended to children aged 12 to 17 as of Friday.

We are thin on local and international data today, with Industrial Production data in the US. The rand will most likely take its cue from global trends and other market moving events today.

Expected ranges for the day:

• USDZAR: R 14.5500/$ – R14.7500/$
• EURUSD: $ 1.1560 – 1.1610
• GBPUSD: $ 1.3690 – 1.3750

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