9 November 2021

The US dollar index retreated further to kick start the week on Monday, trading away from the recent 15 month high on the day. The Dollar was predominantly under pressure across the board, as the market continued to internalize the US jobs report, and also shifting focus to the CPI data ahead, which saw the dollar ending the day weaker at 94.028.

The euro was on the front foot in its early activities on Monday and was also seen carrying that same momentum into the New York session. Positive Sentrix investor confidence data, improved market sentiment, along with a fragile dollar continued to lift the single currency on the day. The euro rose to a high of $1.1594 before ending the session at $1.1588.

Pound sterling seized an opportunity on the day, bouncing off from its recent lows, as the dollar continued to sell off on Monday, with improving risk sentiment also aiding the cable on the day. The pound rose to a high of $1.3580, clawing back all its previous day’s losses, before ending the session at $1.3565.


The South African rand started the week on the front foot continuing, its strengthening trend from the latter part of last week, finding support from a softer dollar environment and improved global market risk appetite. The local currency ended the session firmer at R14.9083 and reached a low of R14.8907.

With key data releases , including inflation data due from the US as well as  mining and manufacturing data due locally this week, all eyes will be on Finance minister Enoch Godongwana maiden mid-term budget speech as market looks for insight into how he plans to address the country’s debt concerns and aid economic recovery.

Although we have no data due locally today, we have a range of data due from both the US and Germany.

Expected ranges for the day:

•                         USDZAR: R 14.7500/$ – R15.0500$

•                         EURUSD: $ 1.1575 – $1.1630

•                         GBPUSD: $ 1.3530 – $1.3660

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