FX DAILY REPORT – 31 January 2025
- The Rand opened stronger against the EUR and weaker against the GBP & USD this morning.
- The South African Reserve Bank and the European Central Bank both reduced interest rates by 25 basis points yesterday afternoon. Since these cuts were already anticipated, market reaction was minimal. Investors remain cautious as they await the implementation of President Trump’s new trade tariffs and their potential economic impact.
- Meanwhile, gold prices have surged as risk-averse investors turn to safe-haven assets. Currently trading just below $2,800.00, the high gold price is helping to cushion potential losses for the ZAR.
Todays Events:
- German CPI Inflation (MoM) at 15:00 – Expected to be 0.1% compared to previous 0.5% growth. A higher-than-expected result can be seen as positive for the EUR.
- US Core PCE Price Index (YoY) at 15:30 – Expected to remain the same at 2.8%. A higher-than-expected result can be seen as positive for the USD.
- US Chicago PMI at 16:45 – Expected to be 40.3 compared to previous 36.9. A higher-than-expected result can be seen as positive for the USD.