|Good morning all. Please note that this will be the last Daily Market Update for the year, we will resume sending the commentary on the 3rd of January 2022. For any market colour or commentary, please contact your respective dealers.
The dollar broke its downward momentum and strengthened against rivals in Friday’s session as market participants fled to the havens amid renewed concerns on the rising Omicron variant cases . The dollar demand steered the dollar index to a high of 96.689 to finally close out at 96.565.
The euro tracked lower on the day as risk off sentiment flooded the market and remained the driver throughout the session. The single currency was further dented by a decline in German Business Climate Index print of 94.7 points from a prior 96.5 points.
The pound came off its recent high and retreated to a low of $1.3227 during the session as risk appetite soured and Omicron jitters hampered the cables performance. The cable managed to trade to a high of $1.3339 before closing the session at $1.3242.
The South African rand edged lower for a 3rd consecutive session to end the week on Friday, continuing to claw back some lost grounds, despite the dollar having a good run on the day against its peers. Subdued flows on the back of the holiday season, most likely aided the local unit on the day. The rand strengthened to a low of R15.7939/$, before ending the session at R15.8740/$.
There isn’t much to look forward to on the data front, as such, the rand will continue to take its cue from global markets and other market moving events.
Expected ranges for the day:
- USDZAR: R 15.7500/$ – R16.0500/$
- EURUSD: $ 1.1220– $1.1290
- GBPUSD: $ 1.3190 – $1.3270