The Pound to South African Rand (GBP/ZAR) exchange rate is steady this morning, as the success of the UK’s vaccine rollout allows Sterling to edge higher.
At the time of writing the pair are trading at around 20.7473 as South African Rand investors await the Federal Reserve’s latest policy decision to drive direction in the currency.
Pound (GBP) Steady on UK Coronavirus Vaccine Rollout
The Pound is rising steadily against the South African Rand this morning as the continuing success of the coronavirus vaccine rollout across the UK adds support to Sterling.
Four million doses of the vaccine are expected to be given this week alone, almost double the amount in previous weeks, and thus putting the NHS ahead of schedule by two weeks.
Unlike multiple EU countries the UK is pushing ahead with the use of the AstraZeneca vaccine despite concerns over an increase in blood clots in those who have had the vaccine.
Health Secretary Matt Hancock spoke to UK television this morning to further dispel any worries over the vaccine to the UK public, saying:
‘The Oxford/AstraZeneca jab is safe, we know that over 10 million people have had it in this country, and that’s what the British regulator says but also the World Health Organisation and even the European regulator.’
Pound investors are also awaiting the BoE interest rate decision tomorrow, with a more optimistic stance from the bank expected following comments from Governor Andrew Bailey earlier in the week.
South African Rand (ZAR) Awaits Federal Reserve Decision
The South African Rand has been lacking direction this morning as investors and markets await the Federal Reserve’s latest policy decision expected this evening.
Investors will look to see if the Federal Reserve is to confirm speculation that a better and quicker recovery for the U.S. economy could lead the bank to end its $120bn per month quantitative easing programme early and begin lifting interest rates as soon as next year.
ZAR found little support from retail sales data from South Africa this morning, which missed forecasts of 0.7% and decreased to -1.6% in January of 2021 over the previous month.
The disappointing retail sales figures give an indication that the South African economic recovery from the coronavirus could take longer than expected.
GBP/ZAR Exchange Rate Outlook: BoE Interest Rate Decision to Push Sterling Higher?
Pound investors will be awaiting the BoE’s interest rate decision early tomorrow afternoon, the bank is expected to keep interest rates low at 0.1% to help combat the coronavirus pandemic.
However an optimistic stance from the bank surrounding the UK’s economic recovery would push Sterling higher.
For South African Rand traders the global market mood will continue to drive movement, depending on the Fed’s decision later today ZAR could see itself pushing higher.
The Pound to South African Rand exchange rate will also be driven by any further coronavirus developments, as it’s reported South Africa needs to ramp up its vaccine rollout by 134,000 people a day.