FX DAILY REPORT – 27 January 2025
- The Rand opened stronger against the USD and weaker against the GBP & EUR this morning.
- President Trump recently stated that he would prefer not to impose tariffs on China. This improved risk sentiment, leading to a stronger ZAR. As China is South Africa’s largest trading partner, the positive news for China had a favourable impact on South Africa as well.
- We have an action-packed week in terms of economic events, including 3 interest rate decisions for the US Feds, SA Reserve Bank and Eurozone’s ECB. The US Feds are currently fully priced in to leave interest rates unchanged on Wednesday, while the SA Reserve Bank and the Eurozone’s ECB are priced in to cut interest rates by 25 basis points on Thursday.
Todays Events:
- German Business Climate Index at 11:00 – Expected to be 84.9 compared to previous 84.7. A higher-than-expected result can be seen as positive for the EUR.
- US New Home Sales at 17:00 – Expected to be 670K compared to previous 664K. A higher-than-expected result can be seen as positive for the USD.