Following a positive start to the day on Friday, we saw the dollar consolidating to end the week slightly flat. The dollar index edged higher in its early activities, bolstered by positive economic data, although it was seen pulling back as risk changed hands. The dollar rose to a high of 94.620, levels last seen in September 2020, before ending the session at 94.320.
After dipping to a low of $1.1513 in its early trades on Friday, the single currency seized an opportunity to make up for some lost ground, as the dollar retreated during intraday activities. The euro recovered on the back of improved risk sentiment to end the session firm at $1.1573.
Despite the dollar trading softer on the day, along with improved risk sentiment, the pound continued to register some more losses, although the losses were capped. The cable dipped to a low of $1.3509, before ending the session at $1.3488.
Despite the rand seeing the most, earlier in last week’s trading session, it managed to close off the week on a positive note. Although having lost some momentum in its earlier activities, the local currency was lifted by global renewed risk appetite bolstered by positive non-farm payroll numbers along with promising data around the effectiveness of an antiviral Covid- 19 pill from pharmaceutical giant Pfizer. The rand appreciated to a low of R15.0093 after depreciating to a high of R15.31.
The rand remains vulnerable to global market factors as the ANC and its political counterparts continue to engage in coalition talks.
Locally on the data front, we have Gold and Forex data due this morning. We also have Reserve Assets numbers due from France as well as Sentix Index data from the Euro Zone.
Expected ranges for the day:
• USDZAR: R 14.8500/$ – R15.1000/$
• EURUSD: $ 1.1530 – $1.1570
• GBPUSD: $ 1.3430 – $1.3500
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