FX DAILY REPORT – 07 March 2025
- The Rand opened stronger against all the majors this morning.
- The USD drops to a new yearly low of 18.10, struggling as President Donald Trump’s tariff policies spark fears of a prolonged global trade war, potentially slowing economic growth and driving inflation.
- Microsoft has announced plans to invest over 5 billion rand for AI data centres in South Africa. This positive development, along with South Africa’s narrowing current account deficit will be contributing to ZAR strength.
Todays Events:
- Eurozone GDP Growth (YoY) at 12:00 – Expected to remain the same at 0.9%. A higher-than-expected result can be seen as positive for the EUR.
- US Average Hourly Earnings (MoM) at 15:30 – Expected to be 0.3% compared to previous 0.5%. A higher-than-expected result can be seen as positive for the USD.
- US Nonfarm Payrolls at 15:30 – Expected to be 159K compared to previous 143K. 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 4.0%. A higher-than-expected result can be seen as negative for the USD.
- US Fed Monetary Policy Report at 18:00 – This report is released bi-annually, detailing discussions of the conduct of monetary policy, economic developments and prospects for the future.