FX DAILY REPORT – 22 November 2024
- The Rand opened stronger against all the majors this morning, however only marginally stronger than the USD.
- The South African Reserve Bank cut interest rates by 25 basis points to 7.75%, as expected. Governor Lesetja Kganyago stated that a larger cut was not considered, emphasizing concerns over emerging geopolitical and price risks despite falling inflation. Markets showed little reaction to the decision.
- The conflict between Ukraine and Russia continues to intensify, with Russian President Vladimir Putin warning of escalating tensions potentially leading to a global conflict. This development follows increased military support for Ukraine by the United States and the United Kingdom. As the situation worsens, investor sentiment is likely to shift toward risk aversion, driving demand for safe-haven assets such as gold and major currencies.
Todays Events:
- UK Retail Sales Growth (YoY) at 9:00 – Expected to be 3.4% from previous months 3.9%. A higher-than-expected result can be seen as positive for the GBP.
- German GDP Growth (QoQ) at 9:00 – Expected to remain the same at 0.2%. A higher-than-expected result can be seen as positive for the EUR.
- HCOB Eurozone Manufacturing PMI at 11:00 – expected to remain the same at 46.0. A higher-than-expected result can be seen as positive for the EUR.
- S&P Global UK Manufacturing PMI at 11:30 – expected to be 50.1 from previous months 49.9. A higher-than-expected result can be seen as positive for the GBP.
- S&P Global US Manufacturing PMI at 16:45 – Expected to be 49.2 from previous months 48.5. A higher-than-expected result can be seen as positive for the USD.
- Michigan Consumer Sentiment at 17:00 – Expected to be 73.0 from previous months 70.5. A higher-than-expected result can be seen as positive for the USD.