The dollar index ticked marginally higher as risk aversion drove investors to the haven assets as Russia-Ukraine tensions escalated yesterday. A dip in US Bond Yields and mixed macroeconomic data from yesterday, with US Jobless Claims print of 248K, worse than the expected 219K also slightly denting the dollar’s allure. The dollar index ended the session at 95.800, after it tested a high of 96.107.
The euro showed some resilience as it was seen trading a high of $1.1385 in yesterday’s session but it slowly retreated from its intraday high as risk entered the market on the back of ongoing geopolitical tensions which continue to dominate headlines. The shared currency fell to a low of $1.1327 and ended the session at $1.1360
The pound continued in its rally in Thursday’s session, trading a high of $1.3637, despite a marginally stronger dollar. The pound posted gains in its third consecutive session as BOE rate expectations and a less hawkish Fed continue to underpin the cable. After opening the session at $1.3582 the pound ended the session stronger at $1.3614.
The South African rand was on the front foot early on Thursday, and pressed through psychological levels on the day, although the session proved quite difficult for the rand to hold on to those gains as the start of the New York session saw the dollar pushing back. Resilient commodity prices, high yields, and the outcome from the SONA continued to support the rand throughout the week. The local unit strengthened to a low of R14.9100/$ before concerns over growing geopolitical tensions saw it retreating to end the session slightly flat at R15.0200/$.
Locally we are empty on the data cards. Internationally, we have data across the EU, UK, and the US. The rand will continue to track global trends and other moving events for clues.
Expected ranges for the day:
- USDZAR: R14.7500/$ – R15.1683/$
- EURUSD: $ 1.1342 – $1.1400
- GBPUSD: $ 1.3569 – $1.3690