Cogent Treasury Solutions

FX DAILY REPORT – 15 October 2024

  • The Rand opened weaker against all the majors this morning.
  • US Fed Member Kashkari revealed that he expects “further modest reductions in our policy rate.” Kashkari also noted that recent jobs data shows a strong labour market and the economy is still on track to hit 2% inflation. These dovish remarks haven’t had a significant effect on the USD as it looks like the next interest rate cut is already priced in at 25 basis points.
  • Investors are focused on the UK’s CPI inflation data, set to be released tomorrow at 8:00 AM. Expectations suggest a decline to 1.9%, below the Bank of England’s target of 2.0%. If the data aligns with forecasts, the chances of the BoE cutting interest rates by 25 or 50 basis points will rise, potentially weakening the GBP.
  • US Fed Kugler Speech at 19:00

Todays Events:

 

  • UK Unemployment Rate at 8:00 – Expected to remain the same at 4.1%. A higher-than-expected result can be seen as negative for the GBP.
  • US Fed Daly Speech at 17:30
  • SARB Monetary Policy Review at 18:00 – The review explains current monetary policy objectives and developments. This could provide clues and clarity on future interest rate decisions for South Africa.
  • US Fed Kugler Speech at 19:00