The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has leapt up to 1.3% today, following a positively interpreted set of US data releases.
Against-Forecast Mining Results could Unsettle GBP/ZAR Pairing
The Pound Sterling (GBP) is likely to remain strong against the Rand (GBP/ZAR) until Thursday next week, when the South African Gold and Mining Production results for July come through. Forecasts have been distinctly pessimistic, but given the recent instability in data releases, anything could happen. In addition, major climbs or falls in the price of gold and platinum will likely have significant impacts on the Rand’s (ZAR) overall performance.
Earlier…
The Pound Sterling (GBP) has gained by 0.3% against the South African Rand (GBP/ZAR) today as a drop in the price of gold and a positive outcome for the US Non-Manufacturing Composite for August combined against the Rand (ZAR).
Oarless Sterling may Still Rise against Rand Tomorrow if US Results are Positive
Neither the Pound (GBP) or the Rand (ZAR) have any significant economic releases tomorrow, but by the movement of the US Dollar (USD), the Pound could still hold a lead against the Rand (GBP/ZAR) into the weekend.
The US has a large number of economic releases due tomorrow, the most important of which are the Average Weekly and Hourly Earnings figures for August. If these rise over the forecast stagnation, the US Dollar is likely to exert pressure on the Rand (USD/ZAR), which will in turn push the Pound up in the pairing. However, any dramatic spikes in the price of gold may offset this potential for gains by Sterling tomorrow.
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has risen considerably today, mostly due to a drop in gold and platinum prices failing to support the South African economy.
GBP/ZAR Exchange Rate News: Triumph against the Rand is one of Few Gains for Sterling Today
The Pound Sterling (GBP) has risen by a substantial 0.8% today against the Rand, although the Pound has made precious few gains elsewhere against competitors. The most notable of these have been rises of 0.3% against the Australian Dollar (GBP/AUD) and 0.5% against the Turkish Lira (GBP/TRY), while losses included falls of over -0.5% against the Japanese Yen (GBP/JPY), -0.7% against the Russian Ruble (GBP/RUB) and -1.2% against the Swedish Krona (GBP/SEK).
The Pound’s underwhelming showing today comes after the only major UK economic releases, the Composite and Services PMIs for August, failed to provide any real support for Sterling. The former result dropped by -1.5 points from 55.6 to 55.1, while the latter showed a -1.8 point drop from 57.4 to 55.6. While not indicative of contraction, these scores still highlight a slowdown in the UK economy, something that rarely lends itself to a positive outlook for the Pound’s prospects.
No Respite for South African Rand as Metal Prices remain Unreliable
The South African Rand (ZAR) has dropped against the Pound Sterling (ZAR/GBP) to 0.0482 today, and remains around the lowest point in 10 years in the wake of ‘Black Monday’ last week.
The Rand hit the actual historic low point of 0.0469 against the Pound (GBP) the day before the stock market crash began in earnest, but today’s result is still an especial low point for the South African currency. The price of gold, while still around its lowest point in 5 years, has dipped today to below $1135 per 100 ounces. Platinum, meanwhile, has done little to bounce back from its worst value in 6 years, seeing a price of just above $1010 today.
GBP/ZAR Exchange Rate Forecast: Negative US Data Outcome may Deplete Current Sterling Gains
The Pound Sterling (GBP) may see its present advantage reduced in the near future after the US Non-Manufacturing Composite for August comes in, given that the figure is expected to fall from 60.3 to 58.2. On the other side of the coin, however, a rise would be contrary to expectations and would therefore trigger major market movement in the paring, likely in the Pound’s favour.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 20.7240 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0482 today.
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