The Pound (GBP) advanced strongly against the South African Rand (ZAR) but the future outlook for the pairing is heavily dependent on next year’s Supreme Court decision.
The Rand has fared poorly on account of domestic production stats, which have fallen considerably short of expectations in October.
GBP ZAR Exchange Rate Jumps after ZA Production Stats Wildly Miss Forecasts
The Pound South African Rand exchange rate has climbed by a considerable amount today, posting an advance of 1.5% to hit an exchange rate of 17.25.
The latest UK news has concerned the state of Article 50, with overall Sterling gains coming from a House of Commons approval on Wednesday night.
The non-binding vote was for MPs to approve triggering Article 50 by the end of March 2017, on the caveat of being allowed to know the Government’s stance in Brexit negotiations.
Meanwhile, major Rand (ZAR) losses have been recorded against the Pound, Euro and US Dollar, in the wake of negative gold, mining and manufacturing results in October.
While losses had been forecast, these were broadly expected to show a slowdown, rather than an actual dip into a negative range.
Pound Rand Exchange Rate Predicted to Rally if Supreme Court Backs Parliamentary Control
The Pound has been boosted against the Rand (GBP ZAR) by the week’s Supreme Court hearing, but the actual verdict about the activation of Article 50 isn’t expected until early 2017.
Should the Supreme Court stick to its original verdict that the key decisions on Article 50 have to be ratified by Parliament, then the Pound could see an early jump against the Rand.
Should the Government be given legal carte blanche to make up the terms of its exit from the EU without additional input, however, the Pound could well start 2017 in a position of weakness.
South African Rand Outlook: Recovery of National Mining Sector Crucial for Future ZAR Gains
The future performance of the Rand against the Pound is partly expected to hinge on mining production figures, which have recently disappointed in the extreme.
Given how important the extraction and sale of precious metals is to the South African economy, a significant turnaround on the latest negative results is required if this aspect is to prove beneficial to the Rand in the future.
Recent Interbank Exchange Rates
At the time of writing, the Pound Rand (GBP ZAR) exchange rate was trending in the region of 17.31 and the Rand Pound (ZAR GBP) exchange rate was trending in the region of 0.05.
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