FX DAILY REPORT – 19 February 2025
- The Rand opened weaker against all the majors this morning.
- US President Trump announced late Tuesday that he is likely to impose a 25% tariff on foreign cars, with even higher tariffs possible for semiconductor chips and pharmaceuticals. The official announcement is expected on April 2nd to confirm these proposed measures. The uncertainty surrounding these additional tariffs is unsettling investors and increasing risk sentiment.
- Meanwhile, Bank of England Governor Andrew Bailey warned in an interview that the UK is experiencing a “weak growth environment” and a period of “heightened uncertainty.” Despite recent positive labour market and GDP data, he emphasized that these figures have not altered the broader economic outlook. This cautious stance is contributing to GBP weakness.
Todays Events:
- UK CPI Inflation (YoY) at 9:00 – Expected to increase to 2.8% compared to previous 2.5%. A higher-than-expected result can be seen as positive for the GBP.
- South African CPI (YoY) at 10:00 – Previous result was 3.0%. A higher-than-previous result can be seen as positive for the ZAR.
- South African Retail Sales (YoY) at 13:00 – Previous result was 7.7%. A higher-than-previous result can be seen as positive for the ZAR.
- US FOMC Meeting Minutes at 21:00 – The minutes may provide further insights into the current outlook of Fed members.