FX DAILY REPORT – 18 November 2024
- The Rand opened stronger against all the majors this morning, recovering some much-needed ground after last week’s losses.
- The USD still remains the top performing major with the main drivers being positive investor sentiment towards Trumps new policies and the relatively hawkish outlook from Fed Chairman, Jerome Powell. Investors are currently split on whether the Fed will cut interest rates at the December meeting or maintain the current levels.
- Renewed geo-political risk in the Russia – Ukraine war will likely cause investor risk sentiment to rise. Recent developments include U.S. President Joe Biden authorizing Ukraine to use American Army Tactical Missile Systems (long-range missiles) against Russia, following reports that Russia has deployed North Korean ground troops to supplement its own forces. An increase in investor risk aversion is likely to weaken the ZAR.
Todays Events:
- German Bundesbank President Nagel Speech at 11:30
- Eurozone ECB Member De Guindos Speech at 10:15
- Eurozone ECB President Lagarde Speech at 20:30