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FX DAILY REPORT – 25 October 2024

  • The Rand opened stronger against all the major currencies this morning.
  • The ZAR recovered some of yesterday’s losses over concerns about supply sanctions on the top palladium producer in Russia. South Africa is currently the largest producer of palladium, and the sanction concerns have caused the local Platinum Group Metals share price to jump over 13% in the last 3 days. The ZAR will continue to benefit if sanctions are imposed.
  • The ECB has already reduced its interest rate by 75 basis points this year, and comments made by ECB members stated that the option of a 50-basis point cut in December is on the table. The potential of a 50-basis point cut will be limiting EUR gains.

Todays Events:

 

  • ECB Member McCaul Speech at 9:00
  • US Durable Goods Orders (MoM) at 14:30 – Expected to decrease to -1.1% growth from previous months 0.0% growth. A higher-than-expected result can be seen as positive for the USD.
  • US Michigan Consumer Sentiment Index at 16:00 – Expected to decrease to 68.9 from previous 70.1. A higher-than-expected result can be seen as positive for the USD.