A sedated start to the week for the dollar, it was seen posting losses in yesterday’s trading session as the market made way for renewed interest in riskier assets. The disappointing business activity growth data release, together with ongoing concerns surrounding the delta variant, exerted more pressure on the dollar. The dollar index closed the session lower at 92.958 after reaching a high of 93.505.
The euro edged higher as the dollar continued to be derailed by the riskier assets rally that drove the dollar to weaken. After dipping to a low of $1.1698, the single currency rose to a high of $1.1749 to end the session at $1.1742.
The pound pulled off an impressive recovery from its previous session, shrugging off the disappointing manufacturing data in the U.K and the torture it had to endure in last week’s session. The cable climbed to a high of $1.3732 recuperating from a low of $1.3610.
The South African rand started the week on a good note, benefitting from a weak dollar environment that came with a spike in global risk appetite. The rand appreciated to a low of R15.1039$ and closed off the session at R15.1167$.
In the way of data today, we have the unemployment data release on the local front. Internationally, we have GDP data in Germany and new home sales in the U.K. The rand is most likely to follow a directive from global events.
Expected ranges for the day:
- USDZAR: R14.9500/$ to 15.2000/$
- EURUSD: $1.1710 to $1.1780
- GBPUSD: $1.3700 to $1.3800
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