In the wake of a dovish Bank of England inflation report on Wednesday, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate cooled by around -0.30%. The South African Rand, meanwhile, has generally softened against the majority of its most traded currency rivals thanks to disappointing retail sales report for September.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 17.7920.
Sterling (GBP) Declines on Inflation Report
Despite reasonably positive UK jobs c data, which showed improvement in wage growth, the Pound has declined against all of its major peers on Wednesday as a result of a dovish inflation report from the Bank of England. The BoE warned that inflation could fall below 1% in the coming six months due to slow growth in the Eurozone economy and other downward pressures.
‘The low level of inflation in part reflects global developments: commodity prices have fallen and import prices more broadly have declined following the previous appreciation in the Sterling exchange rate,’ the report said. ‘But domestic price pressures – in particular – unit labour cost growth – also remain low.’
The Pound Sterling to South African Rand exchange rate has dropped to a low today of 17.7590.
South African Rand (ZAR) Stumbles on Retail Sales
The South African Rand has generally depreciated against its major peers after retail sales data printed disappointingly. Although yearly Retail Sales improved from 2.0% to 2.3%, the monthly figure showed a huge declination from 0.5% to -0.8%. ‘The Rand’s present underperformance offers a glimpse of the negativity still surrounding South Africa’s fundamentals,’ ETM Analytics said in a note.
Pound Sterling to South African Rand Exchange Rate Forecast to Hold Steady
With mounting negative sentiment towards the Bank of England and with South African data disappointing, the GBP/ZAR exchange rate is likely to hold in its current position.
The Pound Sterling to South African Rand exchange rate has advanced to a high today of 17.9220.
UPDATE
GBP/ZAR Extends Declination on Dovish BoE
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 17.7700.
With an absence of domestic data to curb the trend, the Pound to South African Rand exchange rate has continued to decline on Wednesday evening. Negative sentiment towards the Bank of England has been steadily mounting over the past few months, and the latest dovish report has been received poorly by traders.
GBP/ZAR Exchange Rate Continues to Soften on Delayed Rate Hike Bets
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 17.6680.
After having softened considerably following the Bank of England inflation report which suggested inflation could fall below 1%, the Pound has continued its declination against the South African Rand. The dovish inflation report has caused traders to, once again, delay bets as to the timing of a benchmark rate increase.
GBP/ZAR Exchange Rate Softens on UK Data
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 17.6220.
Thursday’s British economic data has printed poorly, allowing the Pound to slump against the majority of its most traded currency peers. The RICS House Price Balance fell from 30% to 20%, despite the median market forecast of a drop to 25%.
South African Mining Production data, due later on Thursday morning, has the potential to provoke GBP/ZAR volatility.
South African Rand (ZAR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
South African Rand,
,US Dollar,0.0890,
South African Rand,,Euro,0.0714,
South African Rand,,Pound,0.0561,
South African Rand,,Australian Dollar,0.1021,
US Dollar,,South African Rand,11.2280,
Euro,,South African Rand,13.9980,
Pound Sterling,,South African Rand,17.8035,
Australian Dollar,,South African Rand,9.7902,
[/table]
