FX DAILY REPORT – 21 January 2025
- The Rand opened stronger against the USD and weaker against the EUR & GBP this morning.
- Trump’s inauguration speech outlined several plans and policies, with a significant focus on economic measures, particularly trade tariffs. Among the key announcements was the threat of imposing a 25% tariff on imports from Mexico and Canada. It was stated that these proposed tariffs are under review but are expected to take effect on February 1st. Trump also indicated his readiness to impose tariffs on China if the proposed TikTok deal is not approved.
- These abrupt tariff proposals have unsettled investors, prompting a shift to safe-haven assets, which has driven up gold prices. The USD has weakened significantly compared to yesterday, and we can anticipate continued volatility in the currency as US markets open today.
Todays Events:
- UK Unemployment Rate at 9:00 – Expected to remain the same at 4.3%. A higher-than-expected result can be seen as negative for the GBP.
- South African Gold Production at 11:30 – Previous result was -3.4% growth. A higher-than-previous result can be seen as positive for the ZAR.
- South African Mining Production at 11:30 – Previous result was 1.4% growth. A higher-than-previous result can be seen as positive for the ZAR.