| USD
Momentum was on the downside for the dollar in its earlier activities, falling to a low of 98.295 intraday. Although the dollar managed to retrace some of its losses as the Fed announced an interest rate hike of 25bps, in line with the market’s expectation, and also projecting its policy rate would reach a range of 1.75% to 2% by the end of 2022. A rally in equities posts the announcement saw dollar bulls run out of steam, driving the dollar index into negative territory, to end the session weaker at 98.618. EUR The euro emerged victorious once again in yesterday’s session, snatching the limelight from a softer dollar, breaking above $1.10. The single currency continued to benefit from an improvement in risk sentiment on the back of prospects of peace talks to see an end of the Russian invasion of Ukraine. The euro touched a high of $1.1046 closing the session at $1.1032. GBP Pound Sterling pushed higher again, posting further gains yesterday as the US dollar eased after the Fed’s policy action announcement. The pound reached a high of $1.3162 before ending the session firm at $1.3145. ZAR The South African rand was tracking firmer ahead of the Fed’s meeting yesterday, with prospects of peace talks between Russia and Ukraine adding to the rand’s strength, as risk appetite was seen returning across global markets. Late trades saw the local unit rallying further to break and hold below the R15.0000$ handle, bolstered by the Fed’s decision to deliver a 25bps rate hike, in line with market expectations. The rand strengthened to a low of R14.9100/$ before ending the session at R14.9200/$. Locally we are empty on the data front. Internationally, we have key data across the UK and the US, with BoE’s rate decision later today been a main event. The local unit will most likely continue to track development around peace talks, along with Covid-19 development in other parts of the world. 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