The GBP ZAR exchange rate continues sliding this week over fears that Britain’s split from the EU could cause a ‘decade of disruption’.
‘Brexit’ Concerns Weigh on Pound (GBP)
The Pound (GBP) tumbled today as the Institute for Public Policy Research (IPPR), a centre-left think-tank released a report on its predictions for the ten years after ‘Brexit’.
The report warns that the UK economy faces a ‘decade of disruption’ as the decision to leave the EU will cause growth to slow while pressuring households across Britain, which it forecasts will be £1,700 worse off a year outside of the EU.
The think-tank also warns that rapidly advancing technology will cause the rate of automation to accelerate even faster, pressuring UK jobs – particularly in manufacturing where it predicts up to 600,000 jobs could be lost over the next ten years. This also comes at a time when Britain faces an aging population, with the cost of adult social care likely to rise to £13bn by 2030
South African Rand (ZAR) Bolstered by Trade Data
The South African Rand (ZAR) has continued to surge against the Pound today, reaching a new six week high as it released it latest Trade Balance data.
While the figures did not show the decline in the shortfall expected, investors were still upbeat as South Africa’s trade deficit shrank from -R3.9bn to -R1.1bn as it was bolstered by a 12.8% rise in exports, mostly driven by rising sales of minerals and precious metals.
GBP ZAR Exchange Rate Forecast: Sterling May Attempt Rally in 2017
The GBP ZAR exchange rate’s decline is likely to persist for the remainder of the week as a lull in data may cause traders to dwell on their ‘Brexit’ worries.
Meanwhile, the South African Rand is likely to continue rising as thin trading volumes over the holiday period helped increase demand for emerging-market currencies, although analysts predict that its gains will come to an end in the New Year.
Looking forward into early 2017, the Pound is likely to continue struggling in the run up to March when Prime Minister Theresa May plans to trigger Article 50, especially as investors still await the release of the government’s plans for ‘Brexit’ negotiations, breeding further uncertainty over the Future of the UK economy.
Current Interbank Exchange Rates
At the time of writing the GBP/ZAR exchange rate was trending around 16.74 and the ZAR/GBP exchange rate was trending around 0.05.
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