USD
The dollar registered losses for a 4th consecutive session, hitting its lowest level in a week as markets continue to digest the Fed’s hawkish tone. A decline in Initial Jobless Claims from a prior 227K to 214K and improved Philly Fed Index print to 27.4 failed to lift the dollar from its rut. The dollar index retreated to a low of 97.727 and closed the session at 97.974. EUR The single currency seized the day once again and outperformed its rivals, maintaining its upward trajectory to break above $1.1100 handle. Improved global market risk sentiment, in the current challenging climate saw the single currency rally to a high of $1.1137 and ending at $1.1089. GBP The cable dipped sharply post the BoE’s announcement of a 25bp rise its benchmark rate to 0.75%. In what market’s perceive as a less hawkish stance than anticipated, the BOE further hinted at a gradual increase in interest rates in the following months. Pound Sterling ended the session relatively where it started at $1.3146 after reaching a high of $1.3211. ZAR The South African rand struggled quite a bit for direction yesterday, closing the day slightly flat following a sideways session. The rand was seen dipping below R14.9000/$ in its early activities, reaching a four month low on day, although it couldn’t hold below those levels, with a slight retracement coming through during intraday trades. A combination of uncertainty, rising commodity prices and the market’s digestion of the Fed’s rate hike saw the rand reaching a low of R14.8500/$ and a high of R14.9800/$ before ending the day at R14.9050/$. Locally we are empty on the data front. Internationally, we have Existing Home Sales prices form the US. The local unit will most likely continue to track global trends and other market moving events. Expected ranges for the day:
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