USD
The dollar index pulled off another stellar performance against its rivals, as expectations of a rate hike happening sooner continues to collar the market. The dollar recorded a high of 96.491 on the day and impressively closed the session at 96.875.
EUR
The single currency closed the day weaker against the dollar at $1.1198 after hitting a high of $1.1253 on the day. The reluctance of the ECB to increase interest rates in response to rising inflation in the Eurozone continues to weigh on the currency. A weak German business print out yesterday added to the drag on the common currency.
GBP
The cable closed softer on the day at $1.3329 after opening at $1.3379 stretching to a 4 day losing streak against the dollar. Brexit negotiations over Northern Ireland and monetary policy guidance from BoE continue to weigh on the Sterling. Investors will focus on cues from the BoE to understand if rates will increase at its next meeting on 16-Dec.
ZAR
South Africa’s rand traded on the backfoot once again on Wednesday. The local currency started the day at R15.8092/$, and staged a brief recovery during the early session but lost its momentum as dollar demand continues to dominate the market. The rand weakened to a high of R15.9738/$ and closed the session at R15.8932/$.
With increasing Covid-19 positive cases and the threats of a 4th wave looming as well as Turkey’s decision to cut interest rates undermining the rand’s performance, the local unit remains vulnerable to persistent risk aversion.
On the data cards locally we have PPI print and data releases from the UK and Germany, anticipate global trends to drive markets.
Expected ranges for the day:
- USDZAR: R 15.8000/$ – R16.0500$
- EURUSD: $ 1.1180– $1.1230
- GBPUSD: $ 1.3315 – $1.3375
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