FX DAILY REPORT – 05 December 2024
- The Rand opened weaker against all the majors this morning.
- Geo-political unrest in South Korea has driven investors toward the safe-haven USD, leading to a weakening of the ZAR. Yesterday, at around 3:30 PM South African time, President Yoon declared martial law, accusing the opposition political party of sympathizing with North Korea and engaging in “anti-state” activities. The decree, which banned protests and political actions, lasted only a few hours before being overturned due to public backlash and parliamentary intervention. South Korea’s political landscape now appears highly unstable, influencing investor risk sentiment.
- Jerome Powell spoke last night and re-assured that the US economy remains strong and the next interest rate decision will remain data dependent. The current market probability of a 25 basis point interest rate cut for the US is at 77.5%, Non-farm payrolls tomorrow will be a major event and will likely influence the interest rate cut probability.
Todays Event:
- US Initial Jobless Claims at 15:30 – Expected to be 215K compared to previous weeks 213K. A higher-than-expected result can be seen as negative for the USD.