Pound South African Rand (GBP/ZAR) Exchange Rate Rises as US to Implement Further Tariffs
The Pound Sterling South African Rand (GBP/ZAR) exchange rate rose by over 1% and the pairing is currently trading at an inter-bank rate of R18.5592.
Trade tensions between the US and China has dampened risk-appetite, causing the South African Rand to slide.
On Friday the US slapped 25% tariffs on $200 billion of Chinese goods.
Now the US is drawing up similar plans to implement further tariffs on $300 billion worth of goods.
However, on Sunday, Larry Kudlow, US President Donald Trump’s Chief Economic Advisor revealed that the White House expects China to retaliate.
Speaking to reporters in Beijing, Foreign Ministry Spokesman Geng Shuang stated:
‘China will never surrender to external pressure. We have the confidence and the ability to protect our lawful and legitimate rights.’
Sterling (GBP) Rises despite Brexit Pessimism
Brexit cross-party talks are set to continue on Monday, which is likely to cause movement of the Pound Sterling.
Speaking to the Guardian, Shadow Brexit Secretary, Sir Keir Starmer has stated that a cross-party Brexit deal would not get through Parliament without a confirmatory vote.
He stated that without a new referendum, up to 150 Labour MPs would vote against any deal.
The Shadow Brexit Secretary also added that he would not be opposed to ending cross-party discussions this week if Theresa May refused to budge on her ‘red lines’.
However this could do little to stop the Pound from rising against the South African Rand as risk-appetite decreased.
South African Rand (ZAR) Slides despite ANC’s Easy Victory
On Saturday it was revealed that the African National Congress (ANC) easily won South Africa’s general election.
However, the party’s share of the vote fell.
This reflected anger at racial inequalities and corruption scandals that remain after the ANC took power in 1994.
The party has not previously won less than 60% of the vote.
The victory has secured enough seats in Parliament to allow President Cyril Ramaphosa another five-year term in office.
However, 57.5% of the parliamentary vote that the ANC secured may leave the President short of ammunition to battle party rivals that oppose his reforms.
Pound Rand Outlook: Will the GBP/ZAR Exchange Rate Rise on Disappointing ZA Unemployment?
Looking ahead to tomorrow, the Pound (GBP) may rise against the South African Rand (ZAR) following the release of the UK ILO unemployment rate.
If the data reveals that employment has continued to rise in March, it could provide the Pound with an upswing of support.
On Tuesday the South African Rand could slip further following the release of the South African unemployment rate for the first quarter of 2019.
If unemployment rises higher than forecast, the Pound Sterling South African Rand (GBP/ZAR) exchange rate could rise.