| USD
The dollar index ticked higher during Friday’s trading session, aided by the recovery in US yields and bets of a Fed rate hike of 50bps by the end of March 2022. The dollar was lifted further, breaking the 96.00 level as the US warned that Russia could launch an invasion on Ukraine given the number of troops assembled on its borders. The dollar ended the session firmer at 96.082 after touching a high of 96.111. EUR The euro found itself on the back foot, as dollar demand and demand for other safe haven currencies dominated Friday’s session. The euro was further weighed by the ECB’s President, Christine Lagarde’s comments on how a rate hike will most likely undermine economic growth and recovery prospects. The single currency tested a high of $1.1427, before taking a nosedive to end the session at $1.1348. GBP Pound sterling also fell victim to a stronger dollar on Friday, despite an array of UK data releases on the day. Although inflationary pressure continue to be evident in the UK, the cable continues to show some resilience, with the BoE’s hawkish prospects also keeping it intact. The pound reached a low of $1.3535 before ending the day on the back foot at $1.3547, although remaining within range. ZAR Following a good run throughout the week, the local unit gave up marginal gains on Friday to end the week on the back foot. We saw the rand retreating during late trades, after dipping to a low of R15.0650/$ on the day. Interest rate hike bets, along with a possible Russian invasion supported the ailing dollar on Friday, also diminishing risk appetite. The rand surrendered its earlier gains, retreating to a high of R15.2725/$, before ending the session at R15.2200/$. Today we have nothing on the local data cards. Internationally we have an array of data across the EU, UK, and the US. The local unit will most likely continue to track developments around geopolitical tensions and other market-moving events. Expected ranges for the day:
|
| This communication (“this communication”) has been provided by the corporate and investment banking division of Absa Bank Limited a registered bank in the Republic of South Africa, a subsidiary of Absa Group Limited, with company registration number: 1986/004794/06 and with its registered office at: Absa Towers East, 3rd Floor, 170 Main Street, Absa Towers West, 15 Troye Street, Johannesburg 2001, Republic of South Africa (“Absa”). Absa is regulated by the South African Reserve Bank. Absa has provided this communication for information purposes only and you must not regard this as a prospectus for any security or financial product or transaction. This communication is from an Absa Sales and/or Trading desk and is not a product of the Absa Research department. This communication has not been produced, reviewed or approved by the Absa Research Department, and is not subject to any prohibition on dealing ahead of the dissemination of research. The views in this communication are not a personal recommendation and do not take into account whether any product or transaction is suitable for any particular investor. This message is subject to the terms and conditions at: http://www.absa.co.za/disclaimer. This communication is confidential and no part of it may be reproduced, distributed or transmitted without the prior written permission of Absa. |
Contact Details
Tel: +27 (0)21 180 4295/6/7
Cell: +27 (0)79 014 4676
Fax: +27 (0)21 930 5493
Email: info@pgforex.co.za
Address:
P.O. Box 6550 | Parow East
Cape Town | South Africa
7501
Company Registration Number: 2002/031454/07