The Pound Sterling (GBP) has dived by -1.7% against the South African Rand (GBP/ZAR) today, as stock markets continue to affect global currency pairings in unpredictable ways.
Irregular State of Play means UK Housing Price Data may have Little Impact on GBP/ZAR
The Pound Sterling’s (GBP) decline against the Rand (GBP/ZAR) today came in spite of the UK Loans for House Purchases for July and CBI Reported Sales both coming in above estimates.
The UK Nationwide House Price Indices for August are due out tomorrow, but even though positive results have been predicted, it is dubious as to whether even a major printing above forecasts would have any great effect due to the currently topsy-turvy state of world currencies due to the ongoing market fears.
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has fallen today for the third day in a row, despite continuing Chinese turmoil and price drops in South Africa’s key exports.
GBP/ZAR could be saved by Major Increase in UK Housing Loans
Despite the Pound (GBP) posting a loss against the Rand (GBP/ZAR) today, this trend may be undone shortly by the release of the UK Loans for House Purchases figure for July. Forecasts have been for a major increase in the result, and coupled with the fact that gold and platinum have continued to dive in price, a GBP/ZAR rally seems a distinct possibility.
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has dived today as the Rand (ZAR) managed to emerge in a position of strength after ‘Black Monday’.
GBP/ZAR Exchange Rate News: Dive in Performance comes Despite Stock Market Improvement
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has fallen significantly today while in other pairings the Pound has fluctuated wildly. The Pound has risen by over 1.1% against the Swiss Franc (GBP/CHF), the Japanese Yen (GBP/JPY) and the Czech Koruna (GBP/CZK) but has conversely fallen by over -1.2% against the Mexican Peso (GBP/MXN), the Russian Ruble (GBP/RUB) and the Indian Rupee (GBP/INR).
The Pound’s sporadic faring today came from continuing concerns over the situation in the global stock markets; although the European markets opened to positive figures this morning, many of the Asian markets opened to shows boards of green, which indicate drops in share value. Beijing has been particularly hard hit for a second day, which caused the People’s Bank of China (PBoC) to cut interest rates by -0.25% in desperation.
Speaking on the chaos, Credit Suisse Chief regional Economist Tao Dong said that ‘China needs extra liquidity to prevent systemic risks. But ultimately, fixing the economy is more important that fixing the stock market and advancing reforms is critical’.
Rand Trumps GBP and Competition despite Quarterly SA GDP Contraction
The South African Rand (ZAR) has fared particularly well today, having recovered steadily from a precipitous dive from 0.0491 to 0.0468 against the Pound (ZAR/GBP) on Monday morning. The Rand has posted 0.0485 against the Pound (GBP) today and was supported in this gain by a healthy increase in both the annual and monthly Mining Production figures for June.
The GDP figures were less beneficial; annual Q2 GDP rose by 1.2%, but the quarterly result reversed the Q1 rise of 1.3% by falling -1.3% today. Despite this dip and a dive in the price of gold and platinum, the Rand has remained strong, helped no doubt by the increasingly unlikely chance of a Fed interest rate hike occurring in the near-future given what happened yesterday.
The Euro (EUR) has fallen by -1.8% against the Rand today (EUR/ZAR) and the US Dollar (USD) has dropped by -1.1% (USD/ZAR).
GBP/ZAR Exchange Rate Forecast: US Consumer Confidence may Destabilise Rand’s Position
The UK doesn’t have any data releases due until tomorrow, but the US Consumer Confidence score for August is out later today and if it meets the predicted increase, a decline may be triggered for the Rand (ZAR). However, given what a knock the ‘Greenback’ took to its performance yesterday, it is highly possible that even with a positive score speculators will remain wary of jumping on another Fed rate hike expectation train so soon after ‘Black Monday’.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 20.6240 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0485 today.
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