FX DAILY REPORT – 19 March 2025
- The Rand opened weaker against all the majors this morning.
- Gold continues to soar, reaching a record high of $3,042.00 with no signs of slowing down. As the escalating trade war causes risk sentiment to increase across global markets, investors are flocking to the precious metal as a safe-haven asset.
- Meanwhile, multiple key interest rate decisions are on the horizon. The U.S. decision is set for today, followed by the UK and South African announcements tomorrow. While investors widely anticipate rates to remain unchanged, any deviation from expectations could trigger significant volatility in the respective currencies.
Todays Events:
- South African CPI (YoY) at 10:00 – Previous result was 3.2%. A higher-than-previous result can be seen as positive for the ZAR.
- Eurozone CPI (YoY) at 12:00 – Expected to be 2.4% compared to previous 2.5% A higher-than-expected result can be seen as positive for the EUR.
- US FOMC Economic Projections at 20:00 – This report includes the projections for inflation and economic growth over the next 2 years, additionally it shows the breakdown of each FOMC members interest rate forecasts.
- US Fed Interest Rate Decision at 20:00 – Expected to remain the same at 4.50%. An unexpected decision to cut interest rates will likely cause the USD to weaken.
- US FOMC Press Conference at 20:30 – FOMC members will explain their interest rate decision and will potentially offer an outlook for future interest rate plans.