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FX DAILY REPORT – 26 March 2025

  • The Rand opened weaker against the GBP and relatively unchanged against the USD & EUR this morning.
  • The EUR is under slight pressure following dovish remarks from European Central Bank policymakers, signalling that interest rates could be cut further, potentially dropping to 2.00% by the latter half of the year from the current 2.50% deposit rate.
  • Meanwhile, market focus is on the UK CPI inflation data set for release today, along with the Spring Forecast statement. Additionally, recent developments suggest the UK may avoid being targeted by the US in the reciprocal tariffs set to be announced on April 2, providing further support for GBP.

Todays Events:

 

  • UK CPI Inflation (YoY) at 9:00 – Expected to be 2.9% compared to previous 3.0%. A higher-than-expected result can be seen as positive for the GBP.
  • UK Spring Forecast Statement at 12:00 – A bi-annual speech addressing the UKs economic forecast. The GBP could strengthen or weaken depending on if the outlook is positive or negative.
  • US Durable Goods Orders (MoM) at 14:30 – Expected to be -0.6% compared to previous 3.1%. A higher-than-expected result can be seen as positive for the USD.