FX DAILY REPORT – 07 October 2024
- The Rand opened stronger against all the majors this morning.
- US labour market data released on Friday reaffirms the recovering labour market with all positive results:
- Nonfarm Payrolls – Result: 254,000 | Expected: 140,000
- Unemployment rate – Result: 4.1% | Expected: 4.2%
- Ave Hourly Earnings – Result: 4.0% | Expected: 3.8%
- All results came out better than expected and caused the USD to strengthen momentarily.
- Investors seem to have completely ruled out a 50 basis point cut for the next US interest rate meeting and bets of a 25 basis point cut now sit at 95.7%.
- Dovish sentiment from the BoE (Bank of England) seem to point towards a more aggressive interest rate cut for the next meeting. This has caused the GBP to lose some strength recently.
Todays Events:
- US FOMC Member Bowman Speech at 19:00 – Following the positive labour market results on Friday, this speech could provide clarity and clues on plans for the next interest rate cut
- US FOMC Member Kashkari Speech at 19:50 – Following the positive labour market results on Friday, this speech could provide clarity and clues on plans for the next interest rate cut