After an intense risk on environment in its previous session, the US dollar traded within a tight range to kick start the week on Monday. The dollar index struggled quite a bit for direction yesterday, as the market continued to digest prospects of policy tapering from the Fed’s address last week. The dollar could also be waiting for a few key events later this week, to get some sense of direction. The dollar index consolidated to close the session weaker at 92.653.

Following a somewhat lazy start to the week, the single currency barely moved yesterday, struggling to stay above $1.1800 on the day. Although the euro ended the session flat, it still maintained some strengthening bias, on the back of a broadly weaker dollar. The single currency consolidated to end the session flat at $1.1798.

Pound sterling was also stuck in a tight range on Monday,  with COVID-19 and Brexit concerns weighing on the cable, amongst other things. The British pound ended the session flat at $1.3756.



The South African rand continued to edge lower on Monday, strengthening for a 7th consecutive session on the day. The  local unit, along with other riskier assets rode the wave of increased appetite for risk in global markets. The rand broke a R14.6000/$ handle, to trade at a two week low of R14.5874, before closing the session at R14.6622/$.

Today we have trade balance data, which previously printed at 57.68 billion, and is now expected to come out at 45 billion, according to the Reuters Poll. Internationally, we have an array of data across the EU, Germany and the US. The local unit is most likely to continue tracking global trends and other market moving events.

Expected ranges for the day:

  • USDZAR: R14.5000/$ to 14.7000/$
  • EURUSD: $1.1810 to $1.1910
  • GBPUSD: $1.3760 to $1.3830
This communication (“this communication”) has been provided by the corporate and investment banking division of Absa Bank Limited a registered bank in the Republic of South Africa, a subsidiary of Absa Group Limited, with company registration number: 1986/004794/06 and with its registered office at: Absa Towers East, 3rd Floor, 170 Main Street, Absa Towers West, 15 Troye Street, Johannesburg 2001, Republic of South Africa (“Absa”). Absa is regulated by the South African Reserve Bank. Absa has provided this communication for information purposes only and you must not regard this as a prospectus for any security or financial product or transaction. This communication is from an Absa Sales and/or Trading desk and is not a product of the Absa Research department. This communication has not been produced, reviewed or approved by the Absa Research Department, and is not subject to any prohibition on dealing ahead of the dissemination of research. The views in this communication are not a personal recommendation and do not take into account whether any product or transaction is suitable for any particular investor. This message is subject to the terms and conditions at: This communication is confidential and no part of it may be reproduced, distributed or transmitted without the prior written permission of Absa.

Contact Details

Tel: +27 (0)21 180 4295/6/7
Cell: +27 (0)79 014 4676
Fax: +27 (0)21 930 5493

P.O. Box 6550 | Parow East
Cape Town | South Africa

Company Registration Number:  2002/031454/07

Additional Links

We are Social

Contact Form