The US dollar index extended its gains from Friday’s session to commence the week. The US Martin Luther King holiday exhibited thin dollar flow, allowing market participants to process Fridays disappointing economic data print. The dollar appreciated to a high of 95.346 on the day before ending the day at 95.258.
The euro failed to gain the upper hand against the dollar in its trading session on the back of thin dollar flow due to the US holiday. Instead the single currency traded weaker, depreciating to a low of $1.1396 and ending the session at $1.1408.
The pound was outperformed by the dollar, despite subdued trading given the US holiday. The single currency extended its losses on the day, its lowest in five days. The pound closed out the session at $1.3644 after slipping to a low of $1.3639.
The rand had a challenging start to the week as it gave up some of its previous week’s gains in its earlier activities, touching a high of R15.4528/$. Investor appetite favored the safety of the havens in anticipation of further signals from the Fed and other central banks’ monetary stance. The rand staged a mild recovery towards the latter parts of the session to end the day at R15.3797/$.
In the way of data, locally, we have Mining and Gold Production figures and key data releases from the UK and Eurozone, which will most likely drive the market.
Expected ranges for the day:
- USDZAR: R15.3000/$ – R15.5500/$
- EURUSD: $ 1.1365 – $1.1420
- GBPUSD: $ 1.3600 – $1.3650