The Pound Sterling to Thai Baht (GBP/THB) and Pound Sterling to South African Rand (GBP/ZAR) exchange rates were both trading higher on Wednesday after the Bank of Thailand took markets by surprise and cut interest rates after weaker growth forecasts and the Pound, meanwhile, climbed on strong Nationwide House Price data; however Sterling weakness may emerge after CBI Reported Sales dropped.
#Thailand's central bank cut rates to 1.5% today. 1/4
— Tom F Joehnk (@tomfjoehnk) April 29, 2015
Pound Sterling to Thai Baht (GBP/THB) Exchange Rate Forecast
The Pound Sterling to Thai Baht (GBP/THB) exchange rate was able to advance on Wednesday as investors digested the surprise 25 basis point interest rate cut to 1.5% by the Bank of Thailand. The Thai Baht to US Dollar (THB/USD) exchange rate slipped by 0.6% in response.
Industry expert Arthid Nanthawithaya commented: ‘This cut will not be the magic medicine to heal the Thai economy, which has very weak growth, but at least it will help bolster some confidence among consumers and businesses. The rate cut will help weaken the Baht and support our exports.’
The finance ministry cut its Gross Domestic Product (GDP) forecasts from 3.9% to 3.7% for this year and clearly the Thai Monetary Policy Committee (MPC) felt concerns over the matter as policymakers voted 5:2 in favour of rate decreases.
Moreover, China’s apparent slowdown is weighing on the Thai economy with exports expected to slow significantly.
Head of fiscal policy at the Thai finance ministry Krisada Chinavicharana stated: ‘Thai exports face limitations this year because of the uncertainty in the global economic recovery, especially with China’s slowdown. We expect the economy to pick up in the second half because of government spending.’
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast
Meanwhile, the South African Rand is having a quiet week by way of data release movement, but has been able to advance on US Dollar weakness. A host of emerging-market currencies have climbed on account of a softer US Dollar, the South African Rand included.
However, the Rand has been volatile in recent weeks as large-scale xenophobic riots took place. South African rioters began waging violence on immigrants from other places in Africa and police have had to undertake mass-scale arrests. However, as the riots stop, the Rand has been offered some stability.
Wednesday has seen the Rand climb ahead of the US Federal Open Market Committee (FOMC) statement expected later in the day.
Standard Bank currency trader Warrick Butler commented: ‘The Rand’s move through 11.95 was good and momentum strong for a test of at least 11.70. A hawkish statement will have a far bigger impact on the market so that is where the risk factor lies.’
Pound Sterling to South African Rand (GBP/ZAR) and Pound Sterling to Thai Baht (GBP/THB) Exchange Rate Forecast
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate may experience movement on Thursday with the release of South African Private Sector Credit, Producer Price Indexes and Trade Balance data.
Meanwhile, the Pound Sterling to Thai Baht (GBP/THB) exchange rate could also be in for a big day on Thursday with Thai Industrial Production and Current Account stats published.
The UK economy had a mixed day on Wednesday when the Nationwide House Price figure climbed by 1.0% in April, allowing the annual stat to hit 5.2% from 5.1%.
However, the CBI Reported Sales number declined from 18 to 12 in April after economists had forecast a move upwards to 25.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is trending in the region of 18.2410; the Pound Sterling to Thai Baht (GBP/THB) exchange rate is trading at 50.9470.