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FX DAILY REPORT – 12 February 2025

  • The Rand opened weaker against all the majors this morning.
  • Jerome Powell testified yesterday, highlighting the overall strength of the U.S. economy and a robust labor market. He also noted that while inflation is easing, it remains above the 2% target. As a result, future interest rate cuts are unlikely and will depend on further declines in inflation. Today’s Q & A session could offer further insights into the monetary policy outlook.
  • Israeli Prime Minister Benjamin Netanyahu has stated that intense fighting will resume if Hamas does not return its hostages by Saturday. This warning adds further tension to the region, heightening geopolitical uncertainty and contributing to a more risk-averse market sentiment.

Todays Events:

 

  • US Core CPI Inflation (YoY) at 15:30 – Expected to be 3.1% compared to previous 3.2%. A higher-than-expected result can be seen as positive for the USD.
  • US CPI Inflation (YoY) at 15:30 – Expected to remain the same at 2.9%. A higher-than-expected result can be seen as positive for the USD.
  • US Fed Chairman Powell Testimony at 17:00 – Today is the Q & A part of the testimony, based on the questions asked and answers given, we could see significant volatility.