The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has fallen considerably today, although against most of its other rivals the Pound (GBP) has actually been maintaining a solid uptrend overall.
GBP/ZAR Exchange Rate News: No ‘Brexit’ News is Good News for UK Economy Today
The Pound (GBP) has fallen by -0.4% against the South African Rand (GBP/ZAR) today, but elsewhere has recorded gains of 0.4% against the New Zealand Dollar (GBP/NZD), 0.5% against the Euro (GBP/EUR) and 1% against the Swedish Krona (GBP/SEK) and Japanese Yen (GBP/JPY). This movement against the Rand (ZAR) is a significant deterioration compared to last week.
The Pound has not been dealt a particularly good hand today, as the February manufacturing PMI has shown the worst result in nearly 3 years, while the Confederation of British Industry (CBI) has emphasised this slow start to the year in its latest survey.
However, the Pound has been bolstered in the same situation by the CBI adopting a stance of cautious optimism for future UK growth, while an absence of the usual inflammatory UK Referendum stories has also aided in the establishment of this overall position of stability.
South African Rand (ZAR) Climbs Today on Manufacturing, Political Drama
The appeal of the South African Rand (ZAR) has risen exponentially today, as the currency has been partly supported by both domestic data and potentially far-reaching events in South Africa’s High Court.
In the former case, the Barclay’s manufacturing PMI for February has risen notably from 43.5 points to 47.1, while in the latter, news has emerged that opposition Democratic Alliance party are taking steps to remove the apparently-corrupt President Jacob Zuma from power.
As part of a joint assault, the DA party have petitioned the South African High Court for a reinstatement of 783 formerly-dropped charges against the President and additionally triggered a debate for a vote of no confidence against Zuma due to his unpopularity and dubious decisions regarding the Ministry of Finance.
GBP/ZAR Exchange Rate Forecast: PMIs set to be Future Focus
The near-future will bring impactful PMI announcements from the UK and South Africa.
Firstly we have the positively predicted UK construction PMI for February, which was expected to rise from 55 points to 55.5 at the time of writing.
Following on from this will be Thursday morning’s early South African standard bank PMI for February, as well as the slightly later pessimistically-predicted UK services and composite PMIs for the same month.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 22.0550 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0453 today.
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