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FX DAILY REPORT – 14 March 2025

  • The Rand opened stronger against all the majors this morning.
  • The EUR weakened yesterday as the trade war between the EU and the US escalated. In response to Trump’s aluminium and steel tariffs, the EU imposed a 50% tax on American whiskey exports. Trump retaliated by threatening a 200% tariff on European wines and spirits.
  • Meanwhile, economic data from the US continues to indicate easing inflation. Alongside CPI results showing a slowdown, yesterday’s PPI figures came in much lower than expected, reinforcing the trend. This increases the likelihood of Fed interest rate cuts in the near future, which could cap further USD gains.

Todays Events:

 

  • UK GDP Growth (MoM) at 9:00 – Expected to be 0.1% compared to previous 0.4%. A higher-than-expected result can be seen as positive for the GBP.
  • German CPI Inflation (MoM) at 9:00 – Expected to be 0.4% compared to previous -0.2%. A higher-than-expected result can be seen as positive for the EUR.
  • US Michigan Consumer Sentiment at 16:00 – Expected to be 64.3 compared to previous 64.0. A higher-than-expected result can be seen as positive for the USD.