FX DAILY REPORT – 21 February 2025
- The Rand opened weaker against the EUR and stronger against the USD & GBP this morning.
- USD weakness can be attributed to disappointing Initial Jobless Claims and Manufacturing Index results. Additionally, uncertainty surrounding Trump’s tariffs and geopolitical tensions fuelled by his Twitter (X) posts about the Ukraine-Russia war are also contributing to the weaker USD.
- Today’s key events include the Manufacturing PMI releases and US Existing Home Sales. While these reports are significant, market reaction may remain subdued as investors focus on developments related to Trump’s tariffs.
Todays Events:
- UK Retail Sales (YoY) at 9:00 – Expected to be 0.6% compared to previous 3.6% growth. A higher-than-expected result can be seen as positive for the GBP.
- German HCOB Manufacturing PMI at 10:30 – Expected to be 45.4 compared to previous 45.0. A higher-than-expected result can be seen as positive for the EUR.
- UK S&P Manufacturing PMI at 11:30 – Expected to be 48.5 compared to previous 48.3 A higher-than-expected result can be seen as positive for the GBP.
- US S&P Manufacturing PMI at 16:45 – Expected to be 51.3 compared to previous 51.2. A higher-than-expected result can be seen as positive for the USD.
- US Existing Home Sales at 17:00 – Expected to be 4.13M compared to previous 4.24M. A higher-than-expected result can be seen as positive for the USD.