The Pound Sterling to South African Rand (GBP/ZAR) exchange rate softened by around -0.66% on Thursday afternoon.
After data pertaining to the UK printed relatively poorly on Thursday, the Pound Sterling softened versus the majority of its most traded currency rivals.
The South African Rand, meanwhile, is generally trending higher against most of its major peers. This can be attributed to the South African Reserve Bank keeping rates on hold.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 17.3740.
Pound Sterling (GBP) Exchange Rate Ticks Lower on House Prices
British economic data printed relatively negatively on Thursday, causing the Pound to soften. Nationwide House Prices dropped from 7.2% to 6.8% on a yearly basis, but month-on-month prices edged higher from 0.2% to 0.3% in January.
‘If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead,’ stated Robert Gardner, chief economist at Nationwide.
Aiding the Pound’s downtrend was CBI Reported Sales data which declined from 61 to 39 in January, although avoided the median market forecast of a drop to 32.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has fallen to a low of 17.3390 today.
South African Rand (ZAR) Exchange Rate Gains on SARB
Although Thursday’s data showed South African producer prices cooled in December, the South African Rand advanced against many of its major peers. This is as a result of the South African Reserve Bank opting to keep interest rates on hold.
Governor Lesetja Kganyago said; ‘The lower inflation path gives us some room to pause in this process, particularly against the backdrop of a continued weakness in the economy.’
‘It will take more than monetary policy to stimulate growth,’ said Thabi Leoka, an economist at Renaissance Capital.
Pound Sterling to South African Rand (GBP/ZAR) Forecast to Hold Losses
Given that British data printed poorly, and traders reacted positively to the SARB holding rates, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate is likely to hold losses for the remainder of Thursday.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate advanced to a high today of 17.6510.
