FX DAILY REPORT – 06 February 2025
- The Rand opened stronger against all the majors this morning.
- Gold reached a new all-time high of $2,880.00 yesterday, driven by heightened risk aversion among investors seeking safe-haven assets. This surge in gold prices is likely supporting the ZAR.
- The key event today is the Bank of England’s interest rate decision at 14:00. Markets expect a 25-basis-point cut from 4.75% to 4.50%. Any deviation from this forecast could lead to significant volatility in the GBP.
Todays Events:
- UK BoE Interest Rate Decision at 14:00 – Expected to cut interest rates to 4.50% from current 4.75%. An unexpected decision to hold interest rates steady will likely cause the GBP to strengthen.
- UK BoE MPC Meeting Minutes at 14:00 – BoE members will explain their interest rate decision and will potentially offer an outlook for future interest rate plans in the UK.
- US Initial Jobless Claims at 15:30 – Expected to be 214K compared to previous 207K. A higher-than-expected result can be seen as negative for the USD.
- South African State of Nation Address (SONA) at 19:00 – Cyril Ramaphosa will address the nation this evening to discuss the current economic, political and social conditions, along with future plans for the country.