The dollar pushed higher again in yesterday’s session, strengthening for a 2nd consecutive day as safe-haven demand continues to be a market driver. The dollar index reached a high of 96.592 and ended the session at 96.369.
The euro continued to slide yesterday, as poor economic data weighed on the currency. The German ZEW Economic Sentiment data for December indicated that German investor sentiment fell more than anticipated, printing at 29.9 points from 31.7 points in November. The single currency fell to a low of $1.1226 before ending the session at $1.1263 on the day.
The pound ended the session soft yesterday, having spent the day unravelling its previous day’s gains. Speculation over the Bank of England’s monetary policy stance continues to dampen sentiment. Pound Sterling traded a low of $1.3207 and ended the session at $1.3242.
Although having started the day firm, the local currency lost its footing during intraday trading after the GDP data print indicated that the economy had contracted by 1.5%, putting an end to four consecutive quarters of growth. The local unit touched a high of R16.0355/$ but thereafter managed to claw back its earlier losses and ended the session relatively firm at R15.8396/$, boosted by waning concerns of the severity of the Omicron variant
We are thin on the data front today with only local Retail sales data due this afternoon as well as Jobs Openings data from the US.
Expected ranges for the day:
- USDZAR: R 15.7000/$ – R16.0000/$
- EURUSD: $ 1.1260– $1.1330
- GBPUSD: $ 1.3210 – $1.3270