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FX DAILY REPORT – 05 March 2025

  • The Rand opened stronger against the USD and weaker against the GBP & EUR this morning.
  • Trump’s trade tariffs have backfired on the USD, fuelling investor concerns about the long-term economic outlook of the United States.
  • Adding to the pressure, US Treasury Secretary Bessent reaffirmed the administration’s commitment to lowering interest rates, despite fears that the tariffs could drive inflation higher. These factors have intensified investor risk aversion.

Todays Events:

 

  • Eurozone HCOB Services PMI at 11:00 – Expected to be 50.7 compared to previous 51.3. A higher-than-expected result can be seen as positive for the EUR.
  • UK S&P Global Services PMI at 11:30 – Expected to be 50.5 compared to previous 50.6. A higher-than-expected result can be seen as positive for the GBP.
  • US ADP Nonfarm Employment Change at 15:15 – Expected to be 144k compared to previous 183k. A higher-than-expected result can be seen as positive for the USD.
  • US S&P Global Services PMI at 16:45 – Expected to be 49.7 compared to previous 52.9. A higher-than-expected result can be seen as positive for the USD.