UPDATE
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate advanced by around 0.7% on Friday morning. With a complete absence of British economic data to provoke volatility, the Pound has seen comparatively subdued trade on Friday. However, the GBP/ZAR exchange rate surged thanks to Rand traders taking profits after the recent surge opened up some attractive selling positions.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 20.3050.
Yesterday…
GBP/ZAR Conversion Rate Predicted to Decline with Absence of British Data to Provoke Volatility
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate dived by around -1.3% on Thursday afternoon.
With a complete absence of domestic data to influence movement, the Pound fluctuated versus its major peers. Many analysts predict that the UK asset will see subdued trade over the coming weeks now that the post-election rally has been corrected and with so much uncertainty regarding Bank of England (BoE) rate hike timing. The prospect of political uncertainty with the forthcoming European Union referendum is also likely to weigh on investor confidence.
Despite uncertainties with regards to the BoE and policy outlook, yesterday’s positive labour market data is likely to add pressure on the Monetary Policy Committee (MPC). Unemployment unexpectedly dropped to a fresh 7-year low, and wage growth remained robust despite missing median market forecasts. With inflation in negative territory, real wages are now close to pre-financial crisis levels.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 20.2120.
ZAR/GBP Exchange Rate Forecast to Rally despite US Dollar Strength
Ordinarily, US Dollar strength would be bad news for the emerging market South African Rand. However, the South African asset advanced significantly versus its major peers as traders continue to support the huge SABMiller deal. The deal is likely to be economically huge for South Africa, both in improving trade and improving unemployment. Despite this, many South African’s are against the acquisition.
‘Aside from antitrust issues, job preservation and tax structures will come under immense scrutiny to ensure that stakeholders’ interests are assured,’ analyst Nema Ramkhelawan-Bhana of Rand Merchant Bank said in a note Wednesday.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate dropped to a low of 20.1220 during Thursday’s European session.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Hold Losses on Central Bank Uncertainty
With traders in the dark with regards to the timing of a BoE and Federal Reserve benchmark rate increase, the Pound is likely to hold a comparatively weak position. Fed rate uncertainty is also likely to support demand for emerging-market assets. With a complete absence of British economic data for the remainder of the week, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate is likely to hold losses.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate climbed to a high of 20.4600 during Thursday’s European session.
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