Cogent Treasury Solutions

FX DAILY REPORT – 22 October 2024

  • The Rand opened stronger against the EUR & GBP however slightly weaker against the USD.
  • The EUR continues to weaken following the latest CPI data release and dovish comments from ECB members. ECB Council Member Simkus noted, “If the disinflation processes get entrenched it’s possible that rates will be lower than the natural level.”. This comment indicates that the ECB could be looking to cut rates to a much lower level than previously expected.
  • Recent comments from US Federal Reserve members suggest a more gradual approach to easing is likely. The current sentiment is that the Fed will continue to slowly lower interest rates in the coming quarters. This less dovish stance will be providing support for the USD.

Todays Events:

 

Todays Events include many Central Bank member speeches, these speeches could provide clues or insight into future monetary policy plans:

 

  • ECB Member McCaul Speech at 13:30
  • German Buba President Nagel Speech at 15:15
  • BoE Governor Bailey Speech at 15:25
  • Fed Member Harker Speech at 16:00
  • ECB President Lagarde Speech at 16:00
  • BoE Breeden Speech at 21:15
  • ECB President Lagarde Speech at 21:15
  • ECB Member Lane Speech at 22:00
  • ECB Member McCaul Speech at 22:15