Cogent Treasury Solutions

Contact

FX DAILY REPORT – 23 September 2024

  • The Rand opened slightly weaker against the GBP, while strengthening against the USD and EUR this morning.
  • Gold reached a new all-time high of $2,630.00, as it continues to be the preferred safe-haven asset. The 50-basis point interest rate cut by the Fed last week has contributed to Gold’s strength. Additionally, rising tensions in the Middle East, following the recent attack, and the resulting geopolitical instability are further boosting the appeal of this ‘low-risk’ asset.
  • The ZAR is currently trading at its strongest level against the USD in 19 months, supported by the high price of gold.
  • The BoE decided to hold interest rates steady last week and seems to have a relatively hawkish view on interest rate decisions for the time being. Additionally, UK Retail Sales came out significantly higher than expected. These events will be providing strength for the GBP.

Todays Events:

 

  • HCOB Eurozone Manufacturing PMI Est. at 10:00 – Expected to be 45.7 compared to previous 45.8. A higher-than-expected result can be seen as positive for the EUR.
  • S&P Global UK Manufacturing PMI Est. at 10:30 – Expected to be 52.3 compared to previous 52.5. A higher-than-expected result can be seen as positive for the GBP.
  • US FOMC Member Bostic Speaks at 14:00 – Will likely discuss the current US economic outlook and could potentially give clues on future interest rate plans.
  • US S&P Global Manufacturing PMI Est. at 15:45 – Expected to be 48.6 compared to 47.9. A higher-than-expected result can be seen as positive for the USD.