| USD
The dollar continued to lose more ground in yesterday’s session with CPI data coming in at 7.0% on par with market expectation. Analysts indicated that the dollar has already priced in expectations of a hawkish policy, coupled with no clear guidance from the Fed took some steam out of the dollar’s push pass the 96 handle. The dollar index traded to a low of 94.907 to close at 94.915. GBP The Pound Sterling continued its rally against the dollar as investors turn their attention to possible rate hikes from the BoE. Investor expectations are buoyed by vaccination rollouts as opposed to lockdown measures which hinder economic activity. The pollical shenanigans of Boris Johnson as a result of the shindigs hosted at his official residence weigh on the quote as he faces increasing scrutiny. The cable traded to a high of $1.3715 before closing at $1.3705. EUR The euro followed suit as it was also seen benefiting from the dollar’s misfortune, as the US CPI print yesterday proved a dull affair. With much of anticipated rate hikes already priced into the quote, the shared currency found some reprieve as the dollar tumbled. The single currency traded to a high of $1.1452 before closing at $1.1441. ZAR The South African rand rallied on Wednesday, strengthening to levels last seen in mid-November 2021. We saw the rand extending its gains early in the New York session on the back of the highly anticipated US inflation data release which brought no surprises and printed in line with the Reuters consensus. Boosted by broader dollar weakness, the local currency built on its early momentum, touching a low of R15.2848$ before ending the day at 15.2940$. The rand remains vulnerable to global market developments as data remains thin locally. On the international data calendar, we have industrial output data due out of Italy this morning, as well as PPI and Initial Jobless claims numbers from the US due this afternoon. Expected ranges for the day:
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