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FX DAILY REPORT – 27 March 2025

  • The Rand opened relatively unchanged against the USD and stronger against the GBP & EUR this morning.
  • The UK CPI inflation results came in lower than expected yesterday at 2.8%, compared to the forecasted 2.9% and the previous 3.0%. This suggests that inflation is cooling, increasing the likelihood of further rate cuts in the UK.
  • Additionally, the UK Spring Forecast Statement revealed plans to reduce welfare and public spending while increasing defence expenditure by £6.4 billion by 2027. These developments contributed to a weaker GBP.

Todays Events:

 

  • South African PPI Inflation (YoY) at 11:30 – Previous result was 1.1%. A higher than previous result can be seen as positive for the ZAR.
  • US GDP (QoQ) at 14:30 – 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 14:30 – Expected to be 225K compared to previous 223K. A higher-than-expected result can be seen as negative for the USD.