After posting impressive gains throughout the week, the dollar index made a U-turn and edged into negative territory and weakened towards the 104.485 mark in Friday’s session. Despite further hawkish signals from the Fed on the day, and upbeat US economic data prints, the increased flows of riskier assets hampered the unit from making any headway in the session. The dollar index closed off the week with downside pressure at 104.521.
It was a better day for the euro as the unit boldly headed towards the $1.0600 barrier, despite a pullback in German and Eurozone macro-economic prints. The shared currency found a leg up from the market’s risk-on bias which saw demand for the haven’s dissipating into thin air. The euro ended the session stronger at $1.0632.
The pound staged a recovery in Friday’s session as a battered dollar and the market’s risk on impulse reignited pound bulls. The pound came off its intraday low of $1.1937 to touch a high of $1.2048, before ending the week higher from its opening level at $1.2040 as a risk-on mode dominated throughout the session.
The South African Rand closed off the week on a positive note, buoyed by an upbeat print of whole economic PMI that rose to 50.5 from 48.7 in February, signaling growth prospects in the local economy. The local unit found more support from positive Chinese services sector data that saw the rand close Friday’s session lower than its previous session at R18.1400/$ after reaching a low of R18.0800/$ on the day.
In the way of data today, we have nothing to write home about on the local front. Internationally, we have All-sector PMI from the UK and factory orders from the US. The rand is mostly likely to follow directive from economic developments.
Expected ranges for the day:
- USDZAR: R18.0000/$ – R18.2500/$
- EURUSD: $1.0595 – $1.0715
- GBPUSD: $1.1960– $1.2075