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FX DAILY REPORT – 07 February 2025

  • The Rand opened stronger against all the majors this morning.
  • The big market movers for today will be all the US labour market data being released this afternoon, especially the Nonfarm payrolls report. Nonfarm Payrolls is expected to come out at 169K, much lower than the previous months 256K. If the result is higher than expected, we can expect the USD to strengthen.
  • The Bank of England did cut interest rates by 25 basis points as expected yesterday, with all 9 MPC members in favour of cutting rates. Although the rate cut was priced in by the market, the GBP weakened significantly.

Todays Events:

 

  • US Average Hourly Earnings (MoM) at 15:30 – Expected to remain the same at 0.3%. A higher-than-expected result can be seen as positive for the USD.
  • US Nonfarm Payrolls at 15:30 – Expected to be 169K compared to previous 256K. A higher-than-expected result can be seen as positive for the USD.
  • US Unemployment Rate at 15:30 – Expected to remain the same at 4.1%. A higher-than-expected result can be seen as negative for the USD.
  • US Fed Monetary Policy Report at 17:00 – This bi-annual report contains discussions of monetary policy, economic developments and prospects for the future.