FX DAILY REPORT – 20 March 2025
- The Rand opened stronger against all the majors this morning.
- The ZAR strength can be largely attributed to the strong performance of the Johannesburg Stock Exchange (JSE), which hit a record high yesterday. Additionally, rising gold prices have further supported the ZAR’s upward momentum.
- The US dollar remains relatively stable after the Federal Reserve decided to keep interest rates unchanged at 4.50% yesterday. Despite Fed Chairman Powell’s remarks on strong economic growth and a resilient labour market, markets are still pricing in a 25-basis-point rate cut for the next meeting in June.
Todays Events:
- UK Unemployment Rate at 9:00 – Expected to remain the same at 4.4%. A higher-than-expected result can be seen as negative for the GBP.
- UK Interest Rate Decision at 14:00 – Expected to hold rates steady at 4.50%. An unexpected decision to cut interest rates will likely cause the GBP to weaken.
- US Initial Jobless Claims at 14:30 – Expected to be 224K compared to previous 220K. A higher-than-expected result can be seen as negative for the USD.
- Philly Fed Manufacturing Index at 14:30 – Expected to be 8.8 compared to previous 18.1. A higher-than-expected result can be seen as positive for the USD.
- South African Interest Rate Decision at 15:00 – Expected to hold rates steady at 7.50%. An unexpected decision to cut interest rates will likely cause the ZAR to weaken.