GBP/ZAR Conversion Rate Predicted to Trend Narrowly despite Waning British Consumer Confidence
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate softened by around -0.1% on Friday afternoon.
Despite the fact that British economic data produced a mixed-bag of results erring towards the negative, the British asset was trending statically versus its major peers during Friday’s European session. The lack of depreciation is mostly the result of quiet trade with mounting market uncertainty surrounding the potential for Federal Reserve and Bank of England (BoE) interest rate changes. The Pound is holding above 1.29 against the Euro, and 1.53 against the US Dollar.
October’s GfK UK Consumer Confidence Survey failed to provoke Sterling gains after an unexpected drop from 3 to 2 despite predictions of a rise to 4. However, analysts at GfK didn’t show any particular concern at the drop in confidence, stating that it was in response to uncertainty regarding the state of the global economic situation as opposed to concerns in reference to the state of the domestic economy. Although it had minimal impact on the Pound, October’s Lloyds Business Barometer climbed from 42 to 50.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 21.2480.
ZAR/GBP Conversion Rate Predicted to Hold Steady as Euro Halts Losses
With the prospect of a December Federal Reserve rate hike and the resultant Euro downtrend looming, the South African Rand softened considerably in the immediate aftermath of the hawkish statement from the Federal Open Market Committee (FOMC). However, losses were short-lived after South Africa’s government announced that it will force municipalities to pay what is owed to Eskom, South Africa’s state-owned electric company which provides around 93% of the nation’s power.
In spite of the subdued market trade on Friday, the South African Rand edged higher versus many of its currency rivals. This is partly as a result of tracking Euro gains, but also in response to positive trade data. South Africa’s Trade Deficit was predicted to narrow to -3.8 billion, but the actual deficit fell sharply to -0.89 Billion Rand. The South African Revenue Service stated that exports increased by 5.6% t to 92.28 billion Rand, while imports fell by 4.5% to 93.17 billion Rand on a monthly basis.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate dropped to a low of 21.0950 during Friday’s European session.
Pound Sterling to South African Rand Forecast: BoE Rate Decision to Dominate Market Focus
Over the coming week there will be several influential data publications pertaining to both the UK and South Africa with the potential to provoke GBP/ZAR volatility. Market focus is likely to be dominated by the Bank of England interest rate decision and inflation report on Thursday. In terms of South African data, Monday’s Manufacturing PMI and Total New Vehicle Sales for October will be of interest.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate climbed to a high of 21.2780 during Friday’s European session.
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