FX DAILY REPORT – 12 November 2024
- The Rand opened significantly weaker against all the Majors this morning.
- The ZAR weakness can be attributed to a few factors. One being the current low gold prices, as one of South Africa’s main exports, lower gold prices will cause the ZAR to weaken. Additionally, China’s recent $1.4 trillion debt package has affected global market sentiment, as it was aimed at managing local debt rather than providing the expected direct economic stimulus, disappointing investors hoping for a boost to economic activity.
- Chinese officials hinted at further stimulus measures in the future, but the timing and extent remain uncertain. This uncertainty has increased caution among investors, particularly in emerging markets like South Africa, leading to additional strain on the ZAR.
Todays Events:
- UK Unemployment Rate at 9:00 – Expected to rise to 4.1% from previous 4.0%. A higher-than-expected result can be seen as negative for the GBP.
- German CPI (YoY) at 9:00 – Expected to rise to 2.0% from previous 1.6%. A higher-than-expected result can be seen as positive for the EUR.
- South African Unemployment Rate at 11:30 – Previous quarters result was 33.50%. A higher than previous result can be seen as negative for the ZAR.
- US Fed Waller Speech at 17:00
- US Fed Member Kashkari Speech at 21:00