The Pound Sterling (GBP) has dropped by -0.4% against the South African Rand (GBP/ZAR) today, although the imminent Bank of England (BoE) announcements may reverse this current downtrend.
Slight Gold Price Spike might not be enough to Preserve Rand’s Current Ruling
Attention on the Pound Sterling (GBP) this week has been focused on Thursday and Friday, and today marks the start of crucial BoE announcements that will affect Sterling’s performance into the weekend and perhaps beyond. The BoE interest rate decision will be announced at midday today, but speculators are more interested in the simultaneously released minutes, which will indicate whether any BoE Monetary Policy Committee (MPC) members are thinking of raising the rate sooner rather than later.
The Rand (ZAR) has been helped out today by the yearly and monthly Mining Production figures for July both growing above estimates; in addition, the price of gold per 100 ounces has started a gentle climb upwards from almost $1100 to over $1105 today, which has also raised support for the Rand.
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has fallen by -0.6% today, following the UK annual Industrial and Manufacturing Production results for July both showing declines.
South African Mining Data to Decide Leader in Pairing Tomorrow
The Pound (GBP) has been severely hampered by the spate of detrimental UK results today, although the same may occur for the South African Rand (ZAR) tomorrow. The Gold and Mining Production results for July are due out, and any declines printed in these key industries may reverse the current GBP/ZAR downtrend.
Earlier…
A major advance has been seen in the Pound Sterling to South African Rand (GBP/ZAR) exchange rate today, owing to action in the FTSE 100 and a recurrent drop in South Africa’s precious metal prices.
GBP/ZAR Exchange Rate News: Glencore Debt Reduction Triggers Mass Sterling Rally
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has risen by 1.2% today, just one of many gains for Sterling on a day of increases across the board. Highlights of the Pound’s gains today include advances of over 0.9% against the New Zealand Dollar (GBP/NZD), the Indian Rupee (GBP/INR), the Mexican Peso (GBP/MXN), the Thai Baht (GBP/THB) and the Turkish Lira (GBP/TRY).
Against expectations, the Pound’s supreme performance today has not from the lacking UK economic results but from the debt-reduction actions of mining and commodities trading giant Glencore. The company has stopped dividend pay and is selling off countless assets in a bid to reduce its large quantity of debt accumulated due to the commodities crash. News of the action immediately sent the FTSE 100 up by over 56 points, or 0.9%. The move also triggered an analysis upgrade for Glencore from ‘underperform’ to ‘Neutral’.
Rand (ZAR) Conversion Rate Continues to Suffer from Fluctuating Metal Prices
The South African Rand (ZAR) has had a virtually opposite performance to the Pound (GBP) today, falling against its rivals following another drop in the price of gold and platinum. Both metals are still trending around their lowest points in over 5 years and today’s drops will do little to inspire confidence in the Rand. The price of gold per 100 ounces fell from $1140 on the September 1st to almost $1120 today, while over the same period the price of platinum has plummeted from over $1012 to almost $990. The Rand received a small positive today in the form of the August South African Foreign Exchange Reserves figure, although as this only increased by a small amount, it was not enough to improve the Rand’s faring.
The Euro has risen by 0.6% against the South African Rand (EUR/ZAR) today, while the US Dollar (USD/ZAR) has done the same by 0.5%.
GBP/ZAR Exchange Rate Forecast: No Major Change Expected in Pairing until Wednesday
The Pound Sterling (GBP) seems set to hold onto its current lead until Wednesday at least, on account of South Africa not having any key economic data until Thursday.
Influential UK reports start to arrive in two days’ time, when the UK July Manufacturing Production figures and the Trade Balances come in. No change has been predicted for the manufacturing results but if the forecast expansion of the UK deficit comes true, Sterling may lose out against the Rand. On Thursday, the glut of South African mining data may also unbalance any lead that Sterling happens to have built up until then.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 21.3020 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0469 today.
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