The Rand has strengthened against the Dollar, holding steady around 17.20 following South Africa’s removal from the FATF grey list on Friday. The country was originally placed on the list in February 2023 and has remained on it for 32 months. The ZAR could see further strength this week, with the trade balance expected to rise by R2.9 billion when figures are released on Friday.
South African Rand 3 day price trend:
Looking ahead, several key rate decisions are on the calendar. In the United States, the below-expectations 3.0% YoY increase in September’s inflation rate has reinforced expectations for a 25bps cut on Wednesday, with markets also pricing in an additional cut before year-end. The Fed’s press conference will draw close attention as investors seek guidance on the multi-month rate outlook. Thursday will also be watched closely as US President Trump meets Chinese President Xi in what could influence risk sentiment. In the Eurozone, the ECB is expected to hold its main refinancing rate steady at 2.15% when it announces its policy decision on Thursday. The region will also release its Core CPI (YoY) data on Friday, with inflation expected to ease slightly by 0.1% to 2.3%. In Asia, the Bank of Japan will also announce its rate decision on Thursday, with no change expected.