The U.S. dollar index found some reprieve on Monday spiked by demand for safety, ahead of the annual discussion of central bank speakers that will take place this week. The meeting is expected to give some direction on whether the asset purchase tapering will take place end of this year. The U.S. dollar index ended the session at 93.4090 after reaching a high of 93.4120.
The euro edged lower as the dollar came in higher on the day. Subsequently, to German elections that saw investors look to safety. The euro hit a low of $1.1683 before ending the session at $1.1724.
The pound showed resistance in yesterday’s trade, it was seen putting on a new pair of heels to recuperate from its losses from the previous session and closed the session at 1.3706 after reaching a high of 1.3728.
A turbulent start for the rand as it extended further losses in yesterday’s session as diminished risk sentiment reared its ugly head once again and weighed on the currency. The local unit tested a high of R15.1006/$ as safe haven demand steered markets, but the rand managed to find some support as Chinese Evergrande insolvency fears moderately subsided. The rand remained resilient and finally ended the session at R14.9563/$.
With nothing on the data front locally, our US counterparts will print their Consumer Confidence index at 16:00 pm, anticipate global factors to move markets.
Expected ranges for the day:
USDZAR: R14.90$ to R15.05$
EURUSD: $1.1695 to $1.1735
GBPUSD: $1.3640 to $1.3740