Tuesday, April 29, 2025
Tag:

Dollar

Rand holding its breath on MPC and inflation number

TreasuryONE looks ahead to the MPC and ECB decisions this week. The expectation is a 50 basis points hike locally, with the SARB caught between a rock and a hard place.

TreasuryONE webinar: Recession, depression, inflation, the petrol price and the rand

Last week's TreasuryONE webinar offered deep insights into the macroeconomic volatility and drivers of the rand. Don't miss the YouTube recording!

Some relief on inflation – or is there?

All eyes will be on speeches by Fed Chair Powell and ECB Chief Lagarde on Wednesday. EU inflation numbers are due this week. Watch out for related commodity and rand moves.

The Fed shows its hand

Despite the public holidays, there's been plenty going on. After a Fed hike and ECB emergency meeting, all eyes are on Powell's Congress testimony on Wednesday.

The US dollar is calling the shots

In an uncertain market, one thing has been stable: given time, the US dollar is the ultimate market mover.

Traders lowering expectations for more aggressive rate hikes by Fed as US economic growth starts to slow

Ironically, a slowing US economy has tempered expectations of aggressive rate hikes, which is bullish for equities and bearish for the dollar.

Some positives for the rand to hold on to

The rand staged a recovery on the back of last week's interest rate hike, with all eyes now firmly on the Fed.

25 or 50, that is the question…

If growth wasn't a concern, a 50bps hike would be a certainty this week. Instead, the MPC has a delicate balancing act ahead, with the market likely to place emphasis on the tone of its statement.

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