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FX DAILY REPORT – 07 November 2024

  • The Rand opened weaker against all the Majors this morning.
  • The USD strengthened significantly yesterday following Trump’s victory in the U.S. Presidential Election. Investors believe Trump’s proposed policies and initiatives will benefit the U.S. economy, making the USD a more favourable asset.
  • Today, two major events are in focus: both the U.S. Federal Reserve and the Bank of England will announce their interest rate decisions. Current market expectations anticipate that each central bank will cut rates by 25 basis points. However, as this cut has already been factored in by investors, a significant market reaction may not occur if the results come in as expected.

Todays Events:

 

  • UK BoE Interest Rate Decision at 14:00 – Expected to cut to 4.75% from 5.00%. This rate cut already is already priced in, if they decide to not cut interest rates, the GBP should strengthen.
  • US Initial Jobless Claims at 15:30 – Expected to be 223K from previous 216K. A higher-than-expected result can be seen as negative for the USD.
  • US Fed Interest Rate Decision at 21:00 – Expected to cut to 4.75% from 5.00%. This rate cut already is already priced in, if they decide to not cut interest rates, the USD should strengthen.
  • US Fed Press Conference at 21:30 – The Press Conference follows after the interest rate decision and typically provides clues and insights for future interest rate plans.