FX DAILY REPORT – 18 October 2024
- The Rand opened weaker against all the majors this morning.
- The ECB decided to cut interest rates yesterday by 25 basis points. Although a rate cut would typically cause a currency to weaken, this rate cut had been fully priced in by investors already which is why there was little to no market reaction.
- In addition to the interest rate cut by the ECB, Eurozone CPI inflation also came in lower than expected at 1.7% compared to expected 1.8%. If inflation continues this downward trend in the Eurozone, the likelihood of the ECB cutting interest rates by 50 basis points could increase.
- Gold reached a new all-time high early this morning and is now currently trading at around $2,712.00. This is due to instability concerns regarding the upcoming elections and the future of the US government. As the US elections near, we can expect to see a more volatile USD.
Todays Events:
- UK Retail Sales (YoY) at 8:00 – Expected to increase to 3.2% from previous months 2.5%. A higher-than-expected result can be seen as positive for the GBP.
- Multiple Fed speeches today that could provide further insights into the Feds current economic outlook:
- Fed Member Bostic at 15:30
- Fed Member Kashkari at 16:00
- Fed Member Waller at 18:10
- Fed Member Bostic at 18:30