The Rand opened weaker against the EUR & USD and stronger against the GBP.
The EUR strengthened as a result of better-than-expected Eurozone GDP Growth. Following the GDP data release, the probability of a 50-basis point rate cut by the ECB eased to 22% from 45% which will also be contributing to the EUR strength.
The GBP weakened after the Autumn Forecast Statement. The government announced the raising of taxes on several fronts and has increased public transport prices. The overall market reaction to all the new changes caused the GBP to weaken.
The South African Budget Policy Statement revealed forecasts of wider budget deficits and rising debt over the next three years, which negatively impacted the ZAR as investors had anticipated a lower budget deficit.
Todays Event:
German Retail Sales (MoM) at 9:00 – Expected to be -0.7% from previous 1.6%. A higher-than-expected result can be seen as positive for the EUR.
South African PPI (YoY) at 11:30 – Previous result was 2.8%. A higher-than-expected result can be seen as positive for the ZAR.
Eurozone CPI Inflation (YoY) at 12:00 – Expected 1.9% from previous 1.7%. A higher-than-expected result can be seen as positive for the EUR.
US Core PCE Price Index (YoY) at 14:30 – Expected to be 2.6% from previous 2.7%. A higher-than-expected result can be seen as positive for the USD.
US Initial Jobless Claims at 14:30 – Expected to be 229K from previous 227K. A higher-than-expected result can be seen as negative for the USD.