FX DAILY REPORT – 16 January 2025
- The Rand opened stronger against all the majors this morning for the 3rd consecutive day.
- UK CPI inflation increased by 0.3% month-on-month and 2.5% year-on-year, falling slightly short of expectations. Core CPI also saw a more significant decline than anticipated. These figures led to a slight weakening of the GBP as expectations grew for potential rate cuts by the Bank of England (BoE).
- US CPI inflation figures met expectations, but investors still anticipate a slightly larger rate cut of 40 basis points for this year. However, these projections are likely to shift as the Trump administration assumes power and begins implementing its new policies.
Todays Events:
- UK GDP growth (MoM) at 9:00 – Expected to increase to 0.2% compared to previous -0.1%. A higher-than-expected result can be seen as positive for the GBP.
- German CPI Inflation (YoY) at 9:00 – Expected to increase to 2.6% compared to previous 2.2%. A higher-than-expected result can be seen as positive for the EUR.
- US Core Retail Sales (MoM) at 15:30 – Expected to be 0.5% compared to previous 0.2%. A higher-than-expected result can be seen as positive for the USD.
- US Retail Sales (MoM) at 15:30 – Expected to be 0.6% compared to previous 0.7%. A higher-than-expected result can be seen as positive for the USD.
- US Initial Jobless Claims at 15:30 – Expected to increase to 210K compared to previous 201K. A higher-than-expected result can be seen as negative for the USD.