The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has advanced today as the People’s Bank of China (PBoC) has continued its devaluation of the Chinese Yuan (CNY) for the third day running.
Rand (ZAR) Expected to Stay Down as US Data Stands to Push Pound (GBP) Higher in GBP/ZAR Pairing
The Pound Sterling (GBP) has risen by 0.3% against the South African Rand (GBP/ZAR) today, as the Rand’s (ZAR) performance continues to be damaged by the low Yuan (CNY). Although the Yuan has been lowered in value again today, this has been less than on Tuesday; the first day of devaluation saw a lowering of -1.9%, while today saw the Chinese currency dropped by -1.1% by the PBoC.
The Rand is expected to remain on the decline against the Pound in the near-future; the US July Advance Retail Sales figure is due today, and any major increase over the forecast growth will likely cripple the Rand. However, if the PBoC decides to raise the Yuan back up tomorrow, this may negate the negative effects of a strong ‘Greenback’ (USD) on the ZAR/GBP pairing.
Earlier…
The Pound Sterling (GBP) has risen against the South African Rand (GBP/ZAR) today, although this gain is less than yesterday’s surge in the aftermath of the Chinese Yuan (CNY) devaluation.
Pound (GBP) likely to gain over Rand (GBP/ZAR) if US Data Proves Favourable; SA Mining Data also Key Factor
The Pound Sterling (GBP) has risen by 0.4% against the South African Rand (GBP/ZAR) today, but has seen a decidedly patchy performance elsewhere. This comes after the UK Earnings, Claims and Employment data failed to inspire confidence in the Pound. The Average Weekly Earnings figure for the three months to the end of June saw a 2.4% increase, although this was worse than forecasts and the previous increase. The July Claimant Count Rate remained unchanged, but the Jobless Claims Change saw a -4.9K reduction in the number of claims last month. However, this positive was overridden by the Employment Change for the three months through June, which saw a -63K increase in the number of Job Losses. Beneficial US Data releases today may advance the Pound against the Rand (ZAR), although the South African Mining Productions figures released tomorrow may upset the GBP/ZAR rise if they show a significant increase in South African mining outputs.
The Pound fell by over -0.9% against the Euro (GBP/EUR), the Czech Koruna (GBP/CZK) and the Norwegian Krone (GBP/NOK), but saw major rises of 0.9% against the Indian Rupee (GBP/INR) and 2.2% against the Russian Ruble (GBP/RUB).
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has risen today after the South African Rand (ZAR) was softened by the Chinese Yuan’s (CNY) dive in value.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate News: Pound Gains over Commodity Currencies after BRC Sales Results
The Pound Sterling (GBP) has gained by 0.6% against the South African Rand (GBP/ZAR) today and has seen substantially larger gains elsewhere. The Pound rose by 0.9% against the New Zealand Dollar today and saw greater gains of more than 1.2% against the Australian Dollar (GBP/AUD), the Russian Ruble (GBP/RUB) and the Singapore Dollar (GBP/SGD).
This surge in performance (particularly against the Antipodean currencies) has been due to the People’s Bank of China (PBoC) lowering the value of the Chinese Yuan (CNY) by nearly -2%; the move came after the Chinese economy failed to meet growth expectations, with the devaluing being used to support China’s outlook. The UK economy was strengthened today by the BRC yearly Like-For-Like Sales result for July; the figure came in at 1.2%, a minor improvement on the forecast 1% increase.
South African Rand to Pound Sterling (ZAR/GBP) Exchange Rate Dives as PBoC Decision frays Economic Lifeline
The South African Rand (ZAR) was dealt a heavy blow today after the PBoC decision was announced, as a weakening of the economic situation in China equates to reduced demand for South African mining exports. This comes at a time when gold and platinum prices are at their lowest in 5 years and speculation over a US interest rate hike by the Federal Reserve has strengthened the US Dollar against the world’s commodity currencies, devaluing their country’s exports further in the process. South Africa’s monthly and yearly Manufacturing Production figures for June came through today, and although a 0.9% increase was recorded for the monthly result, a -0.4% annual decline took place, which didn’t help the Rand’s performance.
The Rand fell by -0.6% against the Pound Sterling (ZAR/GBP) and the US Dollar (ZAR/USD) today and saw a greater loss of -1% against the Euro (ZAR/EUR).
Pound Sterling to South African Rand Exchange Rate Forecast: GBP/ZAR Uptrend expected to remain against Lack of SA Data
Unless anything as equally unexpected as this morning’s Yuan (CNY) devaluing occurs during the week, the South African Rand (ZAR) is unlikely to rise against the Pound Sterling (ZAR/GBP) of its own volition. The South African monthly and yearly Mining Production figures for June are due on Thursday, and although an annual increase has been forecast, this data is classed as low volatility, and is unlikely to reverse the Rand’s fortunes on its own.
The GBP/ZAR exchange rate may continue to strengthen, however, if the UK Job Claims, Earnings and Employment Data due out tomorrow shows a significant growth of the UK economy.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 19.8350 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0504 today.
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