The dollar index ended the session firm after starting the day on the backfoot but managed to advance and gather upward momentum in the mid-afternoon session as the Omicron variant fears continue to recede, bolstering demand for the haven. The dollar index reached a high of 96.427 and closed out at 96.328.
A challenging day for the euro as it battled to hold onto its earlier gains. A decline in German factory orders print by 6.9% MoM and 1% YoY in October weighed on the currency and dented risk appetite. The euro reached a low of $1.1265 to close the day at $1.1285.
The pound tracked slightly higher in yesterday’s session. Pound Sterling found support from a rebound in risk and positive market sentiment following hawkish comments from the BOE’s deputy governor, forecasting UK inflation to rise past 5%. The pound traded a high of $1.3286 and ended the session at $1.3264.
A positive start to the week for the rand as it remained resilient and posted gains. The rand shrugged off negative market sentiment and strengthened to a low of R15.8253/$, finding support from reports indicating that the Omicron variant which is responsible for the recent uptick in Covid 19 cases in the country, results in milder symptoms than the other known variants. The rand ended the session relatively firm at R15.8821/$.
On the data cards locally we have the release of Gold Reserve figures and Q3 GDP print later on in the day and internationally, key releases from the Eurozone and Germany. Anticipate the rand to take its direction from these releases and other offshore events
Expected ranges for the day:
- USDZAR: R 15.7500/$ – R15.9500/$
- EURUSD: $ 1.1210– $1.1300
- GBPUSD: $ 1.3245 – $1.3310