The dollar came off in yesterday’s session weighed by a climbing weekly Jobless Claims print of 211K from an expected 195K, cooling bets of an increased pace of rate hikes from the Fed. After weakening to its day’s low of $105.153, the unit managed to claw back some gains, before closing the day bruised at $105.309.
The shared currency found some reprieve and ticked higher, buoyed by a softer dollar, paired with the market’s risk-on impulse, which remained behind the wheels and drove the currency higher. The euro edged to a high of $1.0590, before closing the session at $1.0580.
The pound had a slow start into the session but managed to pull off a solid performance as pound bulls capitalized on the dollar’s woes, finding leverage from positive risk sentiment, which saw investors chasing riskier assets. The pound rose to a high of $1.1939 and closed the day in the green at $1.1925.
The South African Rand was seen donning new heels and regaining territory that had been lost earlier in the week, pulling strength from improved risk appetite that appeared in yesterday’s trade, after hitting a low that the market hadn’t seen in almost three years. After reaching a high of R18.66/$, the local currency closed off the session at R18.56/$.
On the local front, the data is scant. Internationally, we have a variety of data, with the GD data in the UK and US Non-Farm Payrolls standing out. The rand will most likely be steered by these offshore events.
Expected ranges for the day:
- USDZAR: R18.4000/$ – R18.7500/$
- EURUSD: $1.0570 – $1.0670
- GBPUSD: $1.1900 – $1.2000