With the British growth data fast approaching, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate gained around 0.10%. This is likely to be as a result of speculation that the UK Gross Domestic Product will either meet with, or exceed, expectations.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 17.2220.
A complete absence of South African data on Wednesday will see Rand movement dictated by foreign currency changes. Should the British growth data print positively; the GBP/ZAR exchange rate will strengthen considerably.
Yesterday…
In the aftermath of positive South African data, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate is trending within a tight range. British data, meanwhile, has printed negatively which has seen the Pound trending lower versus many of its major peers. However, a drop in trader risk sentiment has ensured that the GBP/ZAR exchange rate has avoided significant declination.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 17.2640.
Pound (GBP) Trending Lower on Weak Loan Approvals
In the wake of disappointing British economic data, the Pound has generally softened against the majority of its most traded currency peers. Loans for House Purchase declined beyond the market consensus of a drop from 39,271 to 38,500 approvals, with the actual result falling to 37,076. Loan approvals have been steadily declining since January 2014 at a rate of around 10,000 approvals per month, and the recent data is the weakest since May 2013.
The Pound Sterling to South African Rand exchange rate has dropped to a low today of 17.2240.
South African Rand (ZAR) Struggles against Risk Aversion despite Positive Data
A large dip in risk sentiment has seen traders avoiding emerging market currencies, and the South African Rand, therefore, has struggled to rack up any significant gains despite better-than-anticipated economic data.
Yearly Gross Domestic Product showed a growth of 1.4% in the third-quarter, up 0.1% from the previous figure. On a quarterly basis, GDP increased from 0.5% to 1.4%. Additionally, Business Confidence eclipsed the median market forecast of a drop from 46.0 to 42.54, with the actual data rising to 51.
‘The economy will only manage very modest growth in the third quarter,’ Mohammed Nalla, head of strategic research at Nedbank, said in an e-mailed note to clients before the data was released. ‘A more compelling performance is likely in the final quarter.’
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Strengthen
With risk aversion dominating the currency market, the GBP/ZAR exchange rate is likely to strengthen over the course of Tuesday. With that being said, however, the Pound could decline if Bank of England Governor Mark Carney’s speech has dovish overtones.
The Pound Sterling to South African Rand exchange rate has advanced to a high today of 17.3400.
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,0.0907,
South African Rand,,Euro,0.0729,
South African Rand,,Pound,0.0579,
South African Rand,,Australian Dollar,0.1062,
US Dollar,,South African Rand,11.0133,
Euro,,South African Rand,13.6969,
Pound Sterling,,South African Rand,17.2705,
Australian Dollar,,South African Rand,9.4094,
[/table]
