The Pound Sterling to South African Rand (GBP/ZAR) exchange rate slumped by almost 0.3% on Wednesday in spite of a risk-off environment pushing the emerging-market asset lower.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Trending at 17.6760
On Wednesday the Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in a softer position as revised Bank of England (BoE) rate hike bets wore on the British asset.
The Pound had previously declined following the publication of a far from inspiring UK services PMI – a report which increased the likelihood of the BoE refraining from introducing an interest rate increase until the end of 2015 or beginning of 2016.
The Rand, meanwhile, derived some support from developments relating to upcoming infrastructure projects in China and a positive services report for the Asian nation.
Although the British currency recouped losses against several of its peers on Wednesday as the British Retail Consortium’s Shop Price Index showed a modest improvement and UK New Car registrations increased, the GBP/ZAR exchange rate weakness continued.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate hit a low of 17.6410
While the Rand was trending higher against the Pound, the South African currency was struggling against the US Dollar.
The US Dollar to South African Rand (USD/ZAR) exchange rate advanced as the Rand was pressured lower by sliding crude oil prices, Greek political concerns and the expectation that the latest batch of meeting minutes from the Federal Open Market Committee will be hawkish in tone.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate achieved a high of 17.7760
The softness in the Rand was also due to fresh European concerns as the Eurozone’s Consumer Price Index showed deflation in the currency bloc.
According to Reuters; ‘South Africa’s Rand weakened against the US Dollar early on Wednesday as falling global oil prices, down 10% in the past two days, and worries over global growth prospects soured confidence in emerging market assets.’
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast
The FOMC minutes, due out later today, could cause a broad-based softening in emerging market/higher risk assets if they offer any hint as to the timing of the first US interest rate increase.
The only South African data to be aware of this week is the nation’s Total New Vehicle Sales and Foreign Exchange Reserves figures.
Movement in the Pound Sterling to South African Rand (GBP/ZAR) exchange rate is therefore more likely to be inspired by the UK’s upcoming publications and the BoE’s interest rate decision.
Global economic developments and fluctuations in commodity prices will also be influential.
On Friday the UK is scheduled to publish trade balance, manufacturing/industrial production and construction output figures.
Also on Friday the US will be releasing its highly influential US Non-Farm Payrolls stats.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 17.6710
The US Dollar to South African Rand (USD/ZAR) exchange rate is currently trending in the region of 11.6885
The Euro to South African Rand (EUR/ZAR) exchange rate is currently trending in the region of 13.8452
