FX DAILY REPORT – 14 November 2024
- The Rand opened weaker against all the Majors this morning.
- Gold prices have continued to fall, driven by renewed confidence in both the USD and former President Trump, with the price of gold now at $2,560.00. Given that gold is one of South Africa’s primary exports, this decline is contributing to a weaker ZAR.
- Meanwhile, the EUR faces difficulties, weighed down by rising political challenges in Germany. Following the collapse of the current governing coalition, Germany will hold snap elections in February 2025, adding to investor caution toward the EUR amidst growing political uncertainty.
- Yesterday’s U.S. CPI inflation figures met expectations, sparking minimal market movement. However, the USD continues to strengthen as investor confidence recovers. All eyes are now on Fed Chairman Jerome Powell’s speech later today, where investors hope for insight into future monetary policy.
Todays Events:
- South African Gold Production (YoY) at 11:30 – Previous months result was -4.6% growth. A higher than previous result can be seen as positive for the ZAR.
- EUR GDP (YoY) at 12:00 – Expected to be 0.9% from previous 0.6%. A higher than expected result can be seen as positive for the EUR.
- US Initial Jobless Claims at 15:30 – Expected to be 224K from previous 221K. A higher than expected result can be seen as negative for the USD.
- US PPI (MoM) at 15:30 – Expected to be 0.2% from previous 0.0%. A higher than expected result can be seen as positive for the USD.
- Fed Chairman Powell speech at 22:00 – Investors will be listening for any further clues or hints on future monetary policy plans.