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FX DAILY REPORT – 29 November 2024

  • The Rand opened stronger against all the majors this morning.
  • We can contribute the ZARs strength to yesterdays local events, with the PPI results coming in lower than expected and the SARB November Financial Stability Review reflecting a positive outlook for South Africa as a result of successful elections, reduced load-shedding, and expectations of lower interest rates.
  • Todays economic events will be centered around the Eurozone, with the highlight being the release of the Eurozone CPI Inflation Rate (YoY). The ECB currently maintains a relatively dovish stance on interest rate cuts, driven by recent low inflation data. However, a higher-than-expected inflation reading could prompt the ECB to reassess its plans, potentially leading to a stronger EUR.

Todays Events:

 

  • German Retail Sales (MoM) at 9:00 – Expected to be -0.5% compared to previous months 1.2%. A higher-than-expected result can be seen as positive for the EUR.
  • German Unemployment Rate at 10:55 – Expected to remain the same at 6.1%. A higher-than-expected result can be seen as negative for the EUR.
  • Eurozone CPI Inflation Rate (YoY) Prel. at 12:00 – expected to be 2.3% compared to previous months 2.0%. A higher-than-expected result can be seen as positive for the EUR.