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FX DAILY REPORT – 04 October 2024

  • The Rand opened this morning stronger against the Pound but weaker against the Dollar and Euro.
  • The Rand has pulled back from its recent highs due to global uncertainty following the conflict in the Middle East, combined with the Dollar gaining strength thanks to positive U.S. job data.
  • Yesterday, the U.S. released initial job claims showing that 6,000 more people filed for unemployment benefits compared to the previous week.
  • The Pound has weakened after Bank of England Governor Andrew Bailey suggested that the UK might cut interest rates more aggressively if inflation remains low. His comments have led many to expect a 0.25% interest rate cut in November, which is the main reason the Pound has weakened.
  • A lower inflation reading in the Eurozone has increased the likelihood that the European Central Bank will cut interest rates again in October, marking the third reduction by the bank this year.
  • We’re heading into a dramatic end to the week, with U.S. job data in the spotlight and growing tensions in the Middle East as Israeli Prime Minister Benjamin Netanyahu warned that Iran “will pay a heavy price” for Tuesday’s attack. The Rand could react by moving in either direction amidst these developments.

Todays Events:

 

  • At 14:30 today, the U.S. will release its nonfarm payrolls report, which measures job growth. It’s expected to show an increase of 147,000 jobs, compared to 142,000 in the previous report.
  • The U.S. unemployment data will also be released today at 14:30 and is expected to stay the same at 4.2%. Additionally, wage growth, measured by Average Hourly Earnings, is expected to rise by 3.8% for the year ending in September, continuing at the same pace as in August.