FX DAILY REPORT – 26 September 2024
- The Rand opened stronger against all the majors this morning.
- A few analysts have attributed the ZARs current strength to the interest rate cuts made by the SARB and the US Federal Reserve. The weakening USD is playing a role in supporting the ZAR, while the SARB’s rate cut also seems to be contributing to this strength. A rate cut typically weakens a currency, but in this case, the increase in consumer spending appears to have offset the usual market response.
- Today’s main events will be the US GDP results and Fed Chairman Jerome Powell speech today. The US GDP growth is expected to increase to 3.0% quarter on quarter. GDP growth is a good indicator of economic health and if it comes out as expected or higher, we could see the USD strengthen.
Todays Events:
- South African PPI (YoY) at 11:30 – Previous months result was 4.2%. A higher-than-expected result can be taken as positive for the ZAR
- US Durable Goods Orders (MoM) at 14:30 – Expected to be -2.8% from previous 9.9%. A higher-than-expected result can be taken as positive for the USD.
- US GDP Growth Rate (QoQ) at 14:30 – Expected to show 3.0% growth compared to previous quarters 1.4%. A higher-than-expected result can be taken as positive for the USD.
- Fed Chairman Powell Speech at 15:20 – Will likely discuss recent data releases, current economic outlook and potential future rate cutting plans.