The dollar took strain and traded under pressure ahead of the nonfarm payrolls print but managed to regain its composure to end the week on the front foot as the lower-than-expected payrolls print of 210K lifted the dollar. The dollar index traded a low of 95.967 and a high of 96.448 and ended the week at 96.117.
The euro ended the session moderately firm and benefited from a rebound in risk appetite despite dipping sharply and erasing its earlier gains as risk sentiment soured following the Non-Farm Payrolls print. The euro reached a high of $1.1333 and closed the session at $1.1313.
The pound edged lower in Friday’s session succumbing to the dollar strength. The cable was further dented by policy maker Michael Saunders comments, which signalled lower prospects of raised interest rates from the BOE. The pound touched a low of $1.3207 and ended the session at $1.3231.
The rand consolidated on the downside in Friday’s session, plummeting to the R16.1457/$ handle and extended further losses towards the end of intraday trading as dollar demand increased post the Non-Farm Payrolls print and as risk-on flows declined. As increasing daily Covid-19 positive cases continue to fuel negative market sentiments and with the possibility of further lockdown restrictions on the horizon, the local unit is set to have a challenging time ahead this festive season.
A quiet day on the data cards locally with a few releases from the Eurozone and UK, expect Covid-19 developments and other global factors to drive markets
Expected ranges for the day:
• USDZAR: R 15.9500/$ – R16.2500$
• EURUSD: $ 1.1250– $1.1350
• GBPUSD: $ 1.3200 – $1.3260