The Pound Sterling to South African Rand (GBP/ZAR) exchange rate declined by around -0.52% on Tuesday afternoon.
Although British growth data showed GDP was at its slowest pace since 2012, the Pound strengthened versus many of its major peers. This could be the result of traders feeling that the losses generated from election jitters were overdone. Also, there is the potential that the poor pace of growth will spur voters to stick with the Conservative party, who show the most desire to get the British economy back on track.
The South African Rand, meanwhile, strengthened versus many of its major peers after the xenophobic riots that plagued the nation were halted. The soft US Dollar also aided the emerging-market currency.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 18.1630.
Pound Sterling (GBP) Exchange Rate Ticks Higher despite Slow Growth
British growth data failed to meet with expectations on Tuesday. First-quarter Gross Domestic Product registered a slower pace of growth that the median market forecast of 2.6%, with the actual result only reaching 2.4% on the year. On a quarterly basis, GDP failed to meet with the market consensus of 0.5% improvement, with the actual result only coming in at 0.3%.
However, although the Conservatives have been claiming that their positive influence on the economy is the best reason to vote for them, the poor data could actually see more votes for the Tories. This is because many voters fear that a massive policy overhaul would endanger the UK economy, especially with the pace of growth slowing beyond expectations.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate dropped to a low of 18.1250 today.
South African Rand (ZAR) Exchange Rate Gains on Soft US Dollar
With the US Dollar cooling after yet more disappointing domestic data, emerging market currencies have seen an upswing in demand. The South African Rand is one of those emerging market assets benefitting from a soft ‘Buck’ (USD).
In addition to the soft Dollar, the Rand advanced after the xenophobic riots were halted. ‘The violence has stopped,’ Jeff Radebe, a minister in the presidency, told reporters in Pretoria on Tuesday. ‘Peace and calm has returned in the communities that were affected by violent attacks. Our government is in charge. We are reaching out to reassure the global community that South Africa is open and stable for business.’
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Hold Losses
Given the extent of the declination, and with a complete absence of domestic data to provoke changes, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate is likely to hold losses for the remainder of Tuesday’s European session. GBP/ZAR volatility should calm on Wednesday, however, with little by way of influential domestic data to initiate volatility.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate reached a high of 18.3370 today.
trevor
is the rand going up or down in 8weeks