In this week’s market review, we dissect current economic conditions, including the latest US. CPI inflation data. The discussion anticipates a continuation of the disinflationary trend in the US, with a particular focus on the softening core inflation expected in the upcoming release.

TreasuryONE’s currency strategist André Cilliers provides insights into the broader economic landscape, noting the recent job additions in non-farm payrolls and temporary employment spikes linked to the summer tourism season. Despite these temporary job gains, André predicts a “sideways ejection” in inflation rates, suggesting a steady yet cautious economic trajectory. Additionally, he forecasts potential interest rate cuts in the UK and warns of a possible surprise rate cut by the Federal Reserve, emphasising the unpredictability of current economic policies.

The conversation shifts to the potential implications for the South African Rand in light of upcoming political and economic decisions. André expresses scepticism about significant political changes affecting the market immediately but highlights the importance of international currency trends, especially movements in the Euro and Dollar, which could influence the Rand more significantly than domestic political events.

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