FX DAILY REPORT – 23 October 2024
- The Rand opened stronger against all the major currencies this morning.
- The three-day BRICS Summit is currently underway, reigniting discussions about creating a new gold-backed currency to challenge the dominance of the U.S. dollar. Central banks from BRICS nations are aiming to reduce the USD’s global influence, this will likely provide support for Gold prices. (BRICS nations include Brazil, Russia, India, China and South Africa)
- The ZARs strength can be attributed to the high Gold price which hit a new all-time high of $2,753.00 this morning and the current appeal for carry trades. Carry trades occur when investors borrow money from countries with low interest rates and invest it in countries offering higher rates.
Todays Events:
- BRICS Summit (Tuesday – Thursday)
- South African CPI Inflation (YoY) at 10:00 – Previous result was 4.1%. A lower than previous result can be seen as negative for the ZAR.
- Fed Member Bowman Speech at 15:00
- US Existing Home Sales at 16:00 – Expected to be 3.88M from previous months 3.86M. A higher than expected result can be seen as positive for the USD.
- ECB Member Lagarde & Lane Speech at 16:00
- BoE Governor Bailey Speech at 22:30