The US Dollar edged lower yesterday as poor US Durable Goods data put a further dent in the dollar’s recent rally. With eyes on the US Federal Reserve this afternoon, will likely be a cautious day. The dollar index ended the session at 92.432 after reaching a low of 92.317.
The euro picked up further gains yesterday while the dollar rally paused, allowing the euro to come back from lows last seen in March this year. The single currency reached a high of $1.1841 to close off the day at $1.1817.
The pound pushed forward yesterday, returning to where it was trading before the dollar rallied less than 2 weeks ago. Pound Sterling closed the day at $1.3879 after reaching a high of $1.3894.
The rand staged a minor recovery yesterday, managing to touch a low of R14.7558/$ with the dollar edging slightly lower as the US Federal Reserve started its two-day policy meeting. The rand ultimately ended the day at R14.7791/$.
The rand along with its other emerging market peers has been at the mercy of risk sentiment shifts and continues to trade under immense pressure as demand for higher yielding assets remains subdued. As the pandemic continues to ravage global markets and generates volatility, emerging markets are poised to be adversely impacted by changes in investor risk appetite.
No local data is on the cards today, the rand will most likely take direction from global trends. We await the result of the US Fed Policy meeting later this afternoon, where the Fed is expected to keep rates unchanged.
Expected ranges for the day:
- USDZAR: R14.7000 to 14.9000/$
- EURUSD: $1.1750 to $1.1880
- GBPUSD: $1.3800 to $1.3900
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