The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending 0.3% higher on Monday as the appeal of Pound increased thanks to a better-than-forecast UK construction report.
The UK’s Construction PMI registered a reading of 62.4 in July, just shy of June’s four-month high of 62.6. Economists had envisaged that the measure would fall to 62.0, so the result was something of a pleasant surprise.
The data detailed a record-high level of sector employment, with the rate of construction-based job creation being the most rapid since records began in 1997. Residential building activity also jumped by the most considerable amount for almost 11 years and new business climbed.
Markit economist Tim Moore issued the following statement with the figures; ‘All three core categories of construction activity saw historically steep improvements in output levels through July, unsurprisingly led by a resurgent house building sector […] Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak’.
The Pound Sterling to South African Rand exchange rate achieved a high of 17.9940.
The US Dollar to Rand exchange rate was little-changed on Monday after the ‘Greenback’ faltered at the tail end of last week in response to below-forecast US Non-Farm payrolls data.
One emerging-market analyst said this of the Rand’s current movement; ‘Dollar/Rand ended Friday’s session below 10.68, which we mentioned would dent the underlying bullish trend in place over the last week of July. The end of the numerous strikes and wage disputes, as well as recent [Rate] hike action from the South African Reserve Bank may offer the Rand some insulation from the external geopolitical tensions and pressures between the West and Russia’.
Pound Sterling to Rand Exchange Rate Forecast
Tomorrow the Pound to Rand exchange rate could extend today’s gains if the UK’s Services and Composite PMI gauges also pleasantly surprise. The UK’s Services PMI is believed to have risen from 57.7 to 58.0 in July.
Other movement in the pairing could be triggered by South Africa’s KASIGO Manufacturing PMI, due out tomorrow. The index came in at 46.6 in June, well below the 50 mark separating growth from contraction. Given that the five-month long strike in the platinum sector was resolved at the end of June, there are hopes that July’s figure could register a rebound.
The next notable piece of South African data, the nation’s Manufacturing Production figures for June, is due out on Thursday.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trading in the region of 17.9660.
South African Rand (ZAR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,South African Rand,17.9383,
Euro,,South African Rand,14.3159,
US Dollar,,South African Rand,10.6784,
Australian Dollar,,South African Rand,9.9425,
New Zealand Dollar,,South African Rand,9.0472,
Canadian Dollar,,South African Rand,9.7703,
[/table]
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