The dollar powered through Monday’s session ,extending its rally and asserting its dominance on the day. The dollar has proved itself to be the haven currency of choice as it outperforms its rivals and continues to strengthen on the back of waning risk-on sentiment, fuelled by raging tensions between Russia and Ukraine. The dollar continued to ride the wave of Friday’s impressive jobs data print and now eyes the 100 mark . The dollar touched a low of 98.509 but quickly rebounded to rise to a high of 99.418 before ending the session at 99.293.
The euro continued to suffer losses as the geopolitical tensions between Russia and Ukraine continue to place pressure on the currency. The euro touched a low of $1.0804, weighed further by disappointing Eurozone investor sentiment numbers which printed at -7.00, significantly lower than the market’s expectation of 5.3. Although the euro staged a brief recovery intraday touching a high of $1.095, its rally was short lived. The euro ended the day at $1.0852.
The pound was on the losing end during Monday’s trading session as the dollar’s rally dimmed any prospects of the pound’s recovery. The pound had a promising start to the day, touching a high of $1.3248, but gave back its earlier gains, slumping to a low of $1.3099 before ending the session at $1.3102.
An impressive start to the week for the rand as it edged lower in yesterday’s session and touched a low of R15.2400/$. Although the rand initially struggled to find its footing and strayed past the R15.4600/$ barrier, it managed to retrace its losses for the latter part of the day, boosted by surging commodity prices. Foreign exchange reserves print tracked to a high of USD 57.693 billion in February from a prior USD 57.199 billion, being the highest jump in foreign exchange reserves since August 2020. The rand ended the session at R15.3354/$.
On the data cards today locally, the focus will be on gross domestic product data for the fourth quarter, amongst other key release s from the Eurozone, Germany and the US. The rand will continue to take its direction from these data releases and developments from the Russia-Ukraine crisis.
Expected ranges for the day:
- USDZAR: R15.2500/$ – R15.4500/$
- EURUSD: $ 1.0805 – $1.0900
- GBPUSD: $ 1.3085- $1.3165