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FX DAILY REPORT – 27 February 2025

  • The Rand opened weaker against the GBP and stronger against the EUR & USD this morning.
  • South African CPI Inflation came out higher at 3.2% (YoY) compared to the previous 3.0%. Although inflation increased, it is still on the lower end of the SARB target and we could still see policy members potentially leaning towards another rate cut this year. The market reaction was generally muted as investors continue to focus on Trumps tariff policies.
  • Markets appear to have taken a wait-and-see approach as uncertainty surrounding Trump’s new tariffs and the broader geopolitical landscape continues to unfold.

Todays Events:

 

  • South African PPI (YoY) at 11:30 – Previous result was 0.7%. A higher-than-previous result can be seen as positive for the ZAR.
  • US Durable Goods Orders (MoM) at 15:30 – Expected to be 2.0% compared to previous -2.2%. A higher-than-expected result can be seen as positive for the USD.
  • US GDP (QoQ) at 15:30 – Expected to be 2.3% compared to previous 3.1%. A higher-than-expected result can be seen as positive for the USD.
  • US Initial Jobless Claims at 15:30 – Expected to be 222K compared to previous 219K. A higher-than-expected result can be seen as negative for the USD.