Cogent Treasury Solutions

FX DAILY REPORT – 09 October 2024

  • The Rand opened significantly weaker against all the majors this morning.
  • Rising geopolitical tensions in the Middle East are adding pressure to the ZAR, as investors grow increasingly risk-averse due to the ongoing conflict in the region. With no immediate resolution in sight, the uncertainty continues to weigh on the currency’s strength.
  • The US FOMC Interest Rate Decision Meeting Minutes will be released today at 20:00. The Meeting Minutes are expected to explain the reasons for the big rate cut of 50 basis points last month. It also generally gives investors a clearer picture of the Feds current outlook with regards to rate cuts and could provide clues for future interest rate decisions.
  • Today, there are nine speeches scheduled from U.S. Federal Reserve members and one from a European Central Bank (ECB) official. Any hawkish or dovish remarks from these central bank representatives could trigger volatility in the respective currencies, depending on the tone of their comments.

Todays Events:

 

  • FOMC Meeting Minutes at 20:00 – The release of the interest rate decision meeting minutes generally provides a lot of clues and insights into the current attitude and outlook of Fed members.