FX DAILY REPORT – 06 March 2025
- The Rand opened weaker against the EUR and stronger against the GBP & USD this morning.
- The USD continues to weaken as investors digest the new Trump tariff policies implemented this week. Additionally, ADP Nonfarm Employment Change came out much lower than expected, at 77K compared to the expected 141K. This will also be contributing to the weaker USD.
- The EUR continues to strengthen as the new government commits to a €500 billion off-budget fund for infrastructure projects over the next decade. With today’s interest rate decision already pricing in a 25-basis-point cut, the EUR could experience some volatility following the announcement.
Todays Events:
- Eurozone ECB Interest Rate Decision at 15:15 – Expected to cut to 2.65% from current 2.90%. An unexpected decision to hold interest rates steady will likely cause the EUR to strengthen.
- US Initial Jobless Claims at 15:30 – Expected to be 234k compared to previous 242k. A higher-than-expected result can be seen as negative for the USD.
- ECB Press Conference at 15:45 – ECB members will explain their interest rate decision and will potentially offer an outlook for future interest rate plans in the Eurozone.