Cogent Treasury Solutions

FX DAILY REPORT – 03 October 2024

  • The Rand opened stronger against all the majors this morning.
  • ADP Nonfarm employment change came in higher than expected at 143k compared to expected 124k. The recent positive US labour market results have been providing support for the USD, confirming the labour market is recovering and significant rate cuts of 50 basis points may not be necessary. The main and most significant labour market data release will be Nonfarm payrolls tomorrow at 14:30. If it comes in higher than expected, we can expect the USD to strengthen.
  • Today consists of PMI (Purchasing Managers’ Index) data releases for all the majors and South Africa. PMI measures the level of activity and growth in various economic sectors and an increase in PMI can be seen as positive for each respective currency.

Todays Events:

 

  • South African S&P Global PMI at 9:15 – Previous months result was 50.5. A higher than previous result can be taken as positive for the ZAR.
  • Eurozone HCOB Services PMI at 10:00 – Expected to decrease to 50.5 from previous 52.9. A higher-than-expected result can be taken as positive for the EUR.
  • UK S&P Global Services PMI at 10:30 – Expected to decrease to 52.8 from previous 53.7. A higher-than-expected result can be taken as positive for the GBP.
  • US Initial Jobless Claims at 14:30 – Expected to increase to 220.0k compared to previous 218.0k. A higher-than-expected result can be taken as negative for the USD.
  • US ISM Services PMI at 16:00 – Expected to increase to 51.6 from previous 51.5. A higher-than-expected result can be taken as positive for the USD.