FX DAILY REPORT – 12 December 2024
- The Rand opened stronger against all the majors this morning.
- Yesterday, both South African and US inflation figures were released. While US inflation aligned with market expectations, South African inflation came in lower than anticipated, at 2.9%, leading to a strengthening of the ZAR. Furthermore, an early morning surge in gold prices has added to the ZAR’s momentum.
- The ECB is anticipated to cut interest rates by 25 basis points today at 15:15. This would mark the fourth rate cut this year, lowering the interest rate from 3.40% to 3.15%. If the expected cut takes place, it is likely to limit EUR gains.
Todays Events:
- ECB Interest Rate Decision at 15:15 – Expected to decrease to 3.15% from previous 3.40%. A higher-than-expected result can be seen as positive for the EUR.
- Initial Jobless Claims at 15:30 – Expected to be 221K compared to previous 224K. A higher-than-expected result can be seen as negative for the USD.
- US PPI (MoM) at 15:30 – Expected to remain the same at 0.2% growth. A higher-than-expected result can be seen as positive for the USD.
- ECB Press Conference at 15:45 – ECB members are expected to discuss the rationale behind their interest rate decision and share insights on the future economic outlook.