Demand for haven currencies, particularly the dollar continued to diminish. This was on the back of the latest vaccine developments that ignited positive sentiments in the market. The U.S food and drug administrator granted full approval to the Covid-19 vaccine developed by Pfizer and BioNTech, as a result, concerns surrounding the delta variant were pushed to the side making room for further risk appetite. The dollar index dipped to a low of 92.8930 after reaching a high of 93.084.

The single currency continued its winning streak for the 2nd consecutive day this week, benefitting from a weaker dollar environment as risk appetite continues to ride the wave. The euro managed to break above the $1.17 level, closing the session at $1.1759 and reached a high of $1.1764.

The pound failed to hold on to its gains from the previous session, it was seen giving away some of its gains to make a rebound in the latter part of the day, to close the session flat at $1.3729.



The South African rand edged lower on Tuesday as well, continuing to come off its recent highs, despite unemployment numbers printing higher on the day. Renewed risk appetite across global markets, which saw a continued re-entry into riskier assets lifted the local unit, along with other emerging market assets. The local unit fell to a low of R14.9717/$ before ending the session at R15.0016/$.

According to the data released by Stats SA yesterday, South Africa’s unemployment rate rose from 32.6% in Q1 to 34.4% in Q2. This is said to be the highest unemployment rate. Locally, we nothing on the data front and Internationally we have Business cliemate data in Germany and Durable goods data in the US, amongst others. The local unit is most likely going to follow global trends and other market moving events.

Expected ranges for the day:

•                         USDZAR: R14.9000/$ to 15.1000/$

•                         EURUSD: $1.1720 to $1.1760

•                         GBPUSD: $1.3690 to $1.3740

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