The Pound Sterling to South African Rand (GBP/ZAR) exchange rate declined by around -0.15% on Thursday morning.
Although British economic data printed positively on Thursday, the Pound generally softened versus most of its major peers. This can be attributed to a stronger single currency. Additional losses can be blamed on the hangover from Wednesday’s disappointing UK manufacturing output report.
The South African Rand, conversely, strengthened thanks to a stronger common currency despite disappointing mining data. The Rand also appreciated as a result of Eskom suspending its CEO and other executives in the hopes of getting to the bottom of the failed operations of the utility.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate is currently trending in the region of 18.2740.
Pound Sterling (GBP) Exchange Rate Ticks Lower despite Positive Domestic Data
After Wednesday’s manufacturing data failed to meet with forecast growth, the Pound weakened following a long period of appreciation. Thursday has seen a continuation of the declination despite positive domestic data results. The main contributor to the Pound’s depreciation is a stronger Euro as traders fear the recent common currency slide was overdone.
British Trade Balance data printed particularly positively on Thursday, with the deficit narrowing from -£2142 to -£616. Additionally, RICS House Price Balance gained by 14% in February, bettering the median market forecast of a 6% increase.
RICS chief economist, Simon Rubinsohn, said: ‘It is encouraging that the negative trend in buyer inquiries appears to be dissipating, perhaps in part because of growing confidence that the cost of borrowing will stay lower for longer, but more worrying that instructions to sell property continue to drop. This very modest reversal in the demand picture is already being felt in the key measures of price expectations, highlighting the extent of the challenge policymakers will face in addressing the housing crisis in the aftermath of the coming general election.’
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has fallen to a low of 18.3440.
South African Rand (ZAR) Exchange Rate Strengthens on Eskom Inquiry
Given that the Rand tracks Euro movement, the South African asset strengthened despite disappointing data. January’s Mining Production declined by -4.7% on the year, a larger declination than the -2.0% registered previously. On the month, January’s Mining Production dived by -5.4%.
The Rand also appreciated after Eskom, the leading energy provider in South Africa, suspended their CEO and three other high-powered executives so as to launch an inquiry into the failings of the utility. ‘We have asked the executive to step down in the interests of achieving results,’ stated Chairman Zola Tsotsi.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Fluctuate
Given that most analysts predict pronounced Euro volatility over the coming weeks amid tensions between Greece and Germany, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate is likely to fluctuate over the course of Thursday’s trade.
Friday’s British Construction Output data is likely to cause GBP/ZAR movement, although proceedings in Europe may overshadow data releases.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate reached a high of 18.3440.
