FX DAILY REPORT – 04 March 2025
- The Rand opened stronger against the USD and weaker against the GBP & EUR this morning.
- The Eurozone’s preliminary CPI inflation results came in 0.1% higher than expected for both Headline CPI and Core CPI. Additionally, the Manufacturing PMI exceeded expectations, further supporting the Euro’s strength. These positive economic indicators are likely contributing to the EUR’s recent gains.
- President Trump announced that an extra 10% trade tariff on China takes effect today, bringing the total tariff to 20%. Given South Africa’s close economic ties with China, ZAR gains may be limited. Additionally, the 25% tariffs on both Canada and Mexico will also take effect today.
Todays Events:
- South African GDP Growth (QoQ) at 11:30 – Previous result was -0.3%. A higher-than-previous result can be seen as positive for the ZAR.
- Eurozone Unemployment Rate at 12:00 – Expected to remain the same at 6.3%. A higher-than-expected result can be seen as negative for the EUR.