FX DAILY REPORT – 29 January 2025
- The Rand opened stronger against all the majors this morning.
- All eyes will be on the US Feds interest rate decision and FOMC press conference this evening. Markets widely expect the Fed to keep rates unchanged, with the CME FedWatch Tool indicating a 98.4% probability of a pause. Unless there’s a surprise move, the spotlight will be on the FOMC press conference as investors look for clues and insights into the Fed’s future policy direction.
- Concerns over stagflation in the UK are likely to weigh on the GBP. Stagflation refers to a period of slow economic growth, high inflation, and rising unemployment. Despite efforts to curb inflation, it remains persistent, while signs of weakening labour demand add to economic uncertainty.
Todays Events:
- US Fed Interest Rate Decision at 21:00 – Expected to remain unchanged at 4.50%. An unexpected rate cut will likely cause the USD to weaken.
- US FOMC Press Conference at 21:30 – FOMC members will explain their interest rate decision and will potentially offer an outlook for future interest rate plans.