FX DAILY REPORT – 03 February 2025
- The Rand opened weaker against all the majors this morning.
- The return of loadshedding, announced on Friday, led to a weakening of the ZAR against all major currencies. The latest update confirmed a return to Level 4 loadshedding, and any further escalation could put additional pressure on the ZAR.
- Meanwhile, Trump has followed through on his promise to impose trade tariffs—25% on Canada and Mexico and 10% on China—set to take effect on Tuesday. This move has contributed to a stronger USD, though the full impact of these tariffs remains to be seen.
- On Sunday, Trump posted on Truth Social, claiming that “South Africa is confiscating land and treating certain classes of people VERY BADLY.” He further announced that the U.S. would cut off all future funding to South Africa until a full investigation is conducted. This statement caused the ZAR to weaken.
Todays Events:
- South African Manufacturing PMI at 11:00 – Previous result was 46.2. A higher-than-previous result can be seen as positive for the ZAR.
- Eurozone Manufacturing PMI at 11:00 – Expected to be 46.1 compared to previous 45.1. A higher-than-expected result can be seen as positive for the EUR.
- UK Manufacturing PMI at 11:30 – Expected to be 48.2 compared to previous 47.0. A higher-than-expected result can be seen as positive for the GBP.
- Eurozone CPI (YoY) at 12:00 – Expected to be 2.5% compared to previous 2.4%. A higher-than-expected result can be seen as positive for the EUR.
- US S&P Global Manufacturing PMI at 16:45 – Expected to be 50.1 compared to previous 49.4. A higher-than-expected result can be seen as positive for the USD.