GBP/ZAR Exchange Rate Trending within a Tight Range after CBI Data Disappointed
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate softened by around -0.5% on Tuesday afternoon.
As both Bank of England (BoE) Governor Mark Carney and Chief Economist Andy Haldane address the British Treasury Committee, the Pound edged lower versus many of its currency rivals. Carney and Haldane are giving somewhat mixed messages; thus provoking trader uncertainty regarding future policy outlook. Haldane, once again, has insisted that a rate cut is just as likely as a rate hike, although Carney has made no mention of easing policy.
The solitary British economic data publication today from the Confederation of British Industry produced a disappointing result. November’s CBI Reported Sales was predicted to rise from 19 to 25, but the actual result dived to just 7.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 21.1830.
ZAR/GBP Conversion Rate Predicted to Strengthen despite SA GDP Growth Missing Estimates
Over the past few days the Rand dived in value amid tanking base metal prices and US Dollar strength. The Rand has also lost ground in response to the weak Euro as it tracks losses. In general, however, the Rand is still holding a comparatively strong position versus its currency rivals following news last week that the South African Reserve Bank (SARB) hiked rates in order to pre-empt higher US borrowing costs.
On Tuesday morning the South African asset halted losses despite weaker-than-expected growth in the third-quarter. This is mostly due to a static US Dollar and Euro, but also due to the fact that South Africa’s growth rate is still comparatively robust. On the year, third-quarter Gross Domestic Product was predicted to advance by 1.3% but the actual result only showed 1% growth. On a quarterly basis, third-quarter GDP came in at 0.7% growth which was below the median market forecast 1.1%.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate dropped to a low of 21.1550 during Tuesday’s European session.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Fluctuate on US Data
Although there is an absence of further domestic data pertaining to both the Pound and the Rand, there is the potential for GBP/ZAR volatility. Later during the North American session there is the chance of heightened GBP/ZAR movement in response to the plethora of influential US ecostats due for publication. Positive results could send the US Dollar surging which would weigh heavily on demand for the emerging-market South African Rand.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate advanced to a high of 21.4480 during Tuesday’s European session.
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