FX DAILY REPORT – 12 March 2025
- The Rand opened stronger against the USD and weaker against the EUR & GBP this morning.
- All eyes will be on the South African Budget Speech today at 14:00, following its postponement from 19 February due to the GNU’s disagreement on the proposed 2% VAT hike. Expectations now point to a VAT hike of 0.5% to 1%, along with potential increases in fuel levies, sin taxes, and the introduction of a wealth tax.
- In other news, the US has imposed a 25% trade tariff on all steel and aluminium imports, effective today. This escalating trade war is fuelling recession fears, as the tariffs drive up costs for American consumers and businesses relying on these imports.
Todays Events:
- South African Budget Speech at 14:00
- US CPI inflation (YoY) at 14:30 – expected to be 2.9% compared to previous 3.0%. A higher-than-expected result can be seen as positive for the USD.
- Bank of Canda Interest Rate Decision at 15:45 – Expected to cut to 2.75% from current 3.00%. An unexpected decision to hold interest rates steady will likely cause the CAD to strengthen.