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FX DAILY REPORT – 20 February 2025

  • The Rand opened weaker against all the majors this morning.
  • The South African Budget Speech, originally set for yesterday, has been rescheduled to March 12 after the DA and ANC failed to agree on a proposed VAT increase from 15% to 17%. The DA opposed the hike, stating it “would have broken the back of our economy.”
  • Ongoing internal conflicts within the GNU are causing investor confidence to deteriorate, leading to a significant weakening of the ZAR.
  • The FOMC meeting minutes portrayed a hawkish outlook, however did not influence the market as Trumps Tariff talks are still centre stage and continue to inject volatility into all markets.

Todays Events:

 

  • US Initial Jobless Claims at 15:30 – Expected to be 214K compared to previous 213K. A higher-than-expected result can be seen as negative for the USD.
  • US Philadelphia Fed Manufacturing Index at 15:30 – Expected to be 19.4 compared to previous 44.3. A higher-than-expected result can be seen as positive for the USD.