The dollar index ended the session moderately firmer after being mostly range bound. The dollar index peaked at 96.175, underpinned by positive US Jobless Claims print of 222 000. The dollar index ended the session at 96.156.
The euro retreated and erased its earlier gains at the start of the New York session on the back of a slightly firmer dollar. Momentum for the single currency remained on the downside, in tandem with diminished risk appetite as market participants remained cautious ahead of today’s US Non-Farm Payrolls print. The euro finally closed at $1.1299 after trading a low of $1.1293.
The cable posted additional gains despite struggling to find direction in yesterday’s session as risk exchanged hands. Pound Sterling managed to end the session relatively firm at $1.3306 after trading to a high of $1.3333.
The rand rebounded as Omicron variant jitters seem to be cooling down. Investors made room for risk appetite and were on the hunt for the local unit as their high-yielding currency. Researchers at Oxford Economics have indicated in a note that should current vaccines prove effective against the latest strain, risk-off sentiment will most likely subside. The local unit strengthened to a low of R15.7650/$ and closed the session at R15.9287/$.
On the economic calendar we have domestic STD Bank Whole Econ Print and international prints from the Eurozone, UK and US with the US Non-Farm Payrolls print today at 15:30 the main headliner. We anticipate the rand to take its direction from these releases and other global events.
Expected ranges for the day:
USDZAR: R 15.800/$ – R16.0500$
EURUSD: $ 1.1275– $1.1350
GBPUSD: $ 1.3270 – $1.3330
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