Cogent Treasury Solutions

FX DAILY REPORT – 15 November 2024

  • The Rand opened weaker against the USD & GBP and slightly stronger against the EUR, however all price levels remain very similar to yesterday’s opening levels.
  • Fed Chairman Jerome Powell stated in his speech last night that the strong US economy allows policymakers to approach interest rate cuts more gradually. This lack of urgency in lowering rates is favourable for the USD. Furthermore, Initial Jobless Claims came in better than expected at 217K, another positive sign for the USD.
  • Since last week’s U.S. election, the rand has been highly volatile, dropping nearly 5% against the USD. Investors are confident that Trump’s policies could lead to stronger near-term economic growth and possibly add inflationary pressures.

Todays Events:

 

  • UK GDP Growth (YoY) at 9:00 – Expected to be 0.1% growth compared to previous 0.7%. A higher-than-expected result can be seen as positive for the GBP.
  • US Retail Sales (MoM) at 15:30 – Expected to be 0.3% growth compared to previous 0.4%. A higher-than-expected result can be seen as positive for the USD.