FX DAILY REPORT – 08 November 2024
- The Rand opened significantly stronger against all the Majors this morning.
- There are several factors contributing to the strength of the ZAR. First, the US Feds and the UK BoEs recently cut interest rates by 25 basis points. Although these cuts were anticipated and mostly priced in, dovish comments from Fed Chair Jerome Powell at the FOMC press conference likely contributed to weakening the USD.
- Second, China is expected to announce a significant stimulus package aimed at boosting its economy. Given South Africa’s economic ties to China, this anticipated stimulus has also supported ZAR strength.
- Lastly, the initial euphoria following Trump’s victory in the U.S. presidential election appears to have subsided, with prices now sitting below pre-election levels. The delay until Trump is sworn in as President in January may also be contributing to renewed USD weakness.
Todays Events:
- ECB Member McCaul Speech at 11:30
- BoE Member Pill Speech at 14:15
- Michigan Consumer Sentiment at 17:00 – Expected to be 71.0 compared to 70.5. A higher-than-expected result can be seen as positive for the USD.