FX DAILY REPORT – 30 January 2025
- The Rand opened stronger against all the majors this morning.
- Yesterday evening, the US Feds held interest rates steady at 4.50% as expected. During the FOMC press conference, officials acknowledged that while economic growth and the labour market remain strong, inflation is still above the Fed’s target. They also emphasized that any future rate adjustments will depend on incoming economic data.
- Today, both the South African Reserve Bank and the European Central Bank are set to announce their interest rate decisions. Markets have already priced in a 25-basis-point rate cut for both, meaning a significant market reaction is unlikely if the decisions align with expectations.
Todays Events:
- German GDP (QoQ) at 11:00 – Expected be -0.1% compared to previous 0.1%. A higher-than-expected result can be seen as positive for the EUR.
- South African Interest Rate Decision at 15:00 – Expected to cut to 7.50% from current 7.75%. An unexpected decision to hold interest rates steady will likely cause the ZAR to strengthen.
- Eurozone ECB Interest Rate Decision at 15:15 – Expected to cut to 2.90% from current 3.15%. An unexpected decision to hold interest rates steady will likely cause the EUR to strengthen.
- US GDP (QoQ) at 15:30 – Expected to be 2.7% compared to previous 3.1% growth. A higher-than-expected result can be seen as positive for the USD.
- US Initial Jobless Claims at 15:30 – Expected to be 224K compared to previous 223K. A higher-than-expected result can be seen as negative for the USD.
- ECB Press Conference at 15:45 – ECB members will explain their interest rate decision and will potentially offer an outlook for future interest rate plans in the Eurozone.