FX DAILY REPORT – 09 December 2024
- The Rand opened stronger against all the majors this morning.
- The U.S. Non-Farm Payrolls report released on Friday exceeded expectations, showing an increase of 227K jobs compared to the forecasted 202K. Although the labour results came out stronger, they were not necessarily at a level that would deter the Feds from cutting rates. Following the report, the probability of a 25-basis point rate cut at the Fed’s December 18 meeting rose to 85%.
- The Fed Blackout started on Friday and will continue until the interest rate decision on the 18th of December. This essentially means that Fed Officials may not make any comments or release any statements to the public on monetary policy until after the announcement of the interest rate decision.
- The Eurozone’s European Central Bank (ECB) is set to announce its interest rate decision this Thursday. Investors anticipate the ECB will implement its fourth 25 basis point rate cut this year, which will likely be limiting EUR gains.
Todays Event:
- South African Total Vehicle Sales at 14:00 – Previous months result was 47.92K. A higher than previous result can be seen as positive for the ZAR.