The dollar edged higher in Friday’s session, ending the week off at a 3-week peak as markets continued to digest stronger than expected US retail sales figures, which sparked taper talk sentiments. The dollar index reached a high of 93.248 and ended the session at 93.195.
The euro retreated on the back of a stronger dollar as the single currency was weighed by increased demand for the dollar. The euro reached a high of $1.1788 before closing the session at $1.1725.
Pound sterling lost its traction and was on the back-foot against a broadly stronger dollar, amidst disappointing UK retail figures release. Retail figures declined by 0.9% putting a dampener on renewed economic activity expectations post-adjusted Covid-19 restrictions. The cable reached a high of $1.3812 before ending the session at $1.3742.
Our beloved currency continued to lack in sentimentality in Friday’s session, subsequently enduring a torturous and a tempestuous streak in the week. It was weighed down by weak economic data releases in the week, together with a persistently strong dollar environment. The local unit was seen depreciating to a high of R14.7826/$ and closed the session at R14.6825/$.
We are thin in the way of data today with nothing to write home about locally, and internationally we have PPI data in Germany. We are expecting an eventful week from a data perspective, updates will follow as the week progresses. All odds seem to favour the rand to the downside, the rand is most likely to remain pressured by upcoming data events.
Expected ranges for the day:
• USDZAR: R14.6800/$ to R14.9500/$
• EURUSD: $1.1670 to $1.1750
• GBPUSD: $1.3680 to $1.3760
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