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FX DAILY REPORT – 19 November 2024

  • The Rand opened stronger against all the majors this morning.
  • The S&P Global revised South Africa’s outlook from stable to positive last Friday. This has been driving the ZAR’s strength. The stability of the GNU has played a key role in improving the outlook, making the ZAR more attractive to investors.
  • Today’s key events include the Eurozone CPI inflation report and U.S. housing starts data. The ECB currently maintains a relatively dovish stance on interest rate cuts. However, if CPI figures exceed expectations, this could prompt a shift, potentially strengthening the EUR as the ECB may become less inclined to lower rates.
  • US Housing Starts measures the change in the number of new constructions underway. A higher-than-expected result is an indicator of a strong economy and is likely to strengthen the USD.

Todays Events:

 

  • Eurozone CPI Inflation (YoY) at 12:00 – Expected to remain the same at 2.0%. A higher-than-expected result can be seen as positive for the EUR.
  • US Housing Starts at 15:30 – Expected to remain the same at 1.35M. A higher-than-expected result can be seen as positive for the USD.