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: