FX DAILY REPORT – 28 January 2025
- The Rand opened significantly weaker against all the majors this morning.
- China has unveiled a new AI model called DeepSeek, which is competing with top-tier models like ChatGPT. Remarkably, DeepSeek achieves comparable results while using significantly less processing power and data. This launch has reignited concerns about Trump’s plans to impose strict trade tariffs, driving investors toward safe-haven assets. As a result, the majors have strengthened significantly.
- In a separate development, Trump threatened to impose tariffs on Colombia after two U.S. military planes carrying deported illegal immigrants were denied landing. The dispute has since been resolved, as Colombia agreed to Trump’s demands. However, his response highlights the strong likelihood of significant consequences for countries that choose not to cooperate with the US.
Todays Events:
- US Durable Goods Orders (MoM) at 15:30 – Expected to grow by 0.3% compared to previous -1.1%. A higher-than-expected result can be seen as positive for the USD.
- US CB Consumer Confidence at 17:00 – Expected to be 105.7 compared to previous 104.7. A higher-than-expected result can be seen as positive for the USD.