The dollar came under pressure earlier in the session and edged lower as the first confirmed Omicron variant case was detected. The dollar managed to retrace its losses and rallied, buoyed by a positive print of ISM data which increased to 61.10, signalling an
expansion in US economic activity. The dollar index traded a low of 95.670 and a high of 96.136 respectively and closed out at 96.028
The euro ticked higher at the start of the American session on the back of a softer dollar but failed to gain further positive traction and came down from its midday rally of $1.1359, as risk sentiment improved. The euro dipped to a low of $1.1301 and ended the session at $1.1319.
The pound posted some gains although with reduced momentum in its earlier activities but slid as safe haven flows dampened sentiment. The cable tested a high of $1.3351 and closed the session at $1.3277.
The rand firmed at the start of the session and displayed some resilience on the back of a slightly weaker dollar but consolidated on the downside as Omicron fears dented the appeal of riskier assets. The rand depreciated to a high of R16.0512/$ and closed the session fragile at R16.0296/$.
On the economic calendar we have an array of data, with key data releases from the Eurozone, US and UK, notably Initial Jobless Claims data and US Non-Farm Payrolls print on Friday. Expect these data releases and the Omicron variant headlines to continue to steer the market.
Expected ranges for the day:
- USDZAR: R 15.8500/$ – R16.2000$
- EURUSD: $ 1.1300– $1.1365
- GBPUSD: $ 1.3200 – $1.3310