Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate sees Marginal Decline after BoE’s Dovish Blowout
The Pound Sterling (GBP) has declined by a minor amount against the South African Rand (GBP/ZAR) today, mainly on account of yesterday’s Bank of England (BoE) dovishness lingering on today.
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UK Production and Trade Balance Results Next Influencer of GBP/ZAR Exchange Rate
The next economic publications due to move the Pound Sterling (GBP) will be the impending UK Industrial and Manufacturing Production results for September, along with the Trade Balance results for the same month, which have been forecast to show small movements towards a neutral figure.
The Pound Sterling (GBP) has risen by 0.3% against the South African Rand (GBP/ZAR) today, which has mainly come about from the UK Halifax PLC House Prices for October rising relative to previous figures.
Imminent BoE Decision to decide future GBP/ZAR Exchange Rate Movement
The next piece of news to affect the Pound Sterling (GBP) will be the Bank of England (BoE) Interest Rate Decision, Inflation Report and Minutes for the actual rate decision itself. At the time of writing, the most optimistic forecasts were for a dissent of 3-6 voters.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has advanced considerably today, mainly on the highly positive result from the day’s UK PMIs. By contrast, the Rand (ZAR) has been beset by domestic problems and has fared poorly against the competition.
GBP/ZAR Exchange Rate News: Unexpected Rise in UK PMIs echoes Events on Monday
The Pound Sterling (GBP) has made a gain of 0.7% against the South African Rand (GBP/ZAR) today; elsewhere the British Pound has made additional advances of 0.7% against the Norwegian Krone (GBP/NOK), 0.8% against the Romanian Leu (GBP/RON) and 0.9% against the New Zealand Dollar (GBP/NZD) and the Hungarian Forint (GBP/HUF). The most notable loss has been by -0.4% against the Thai Baht (GBP/THB).
As with Monday’s prediction-beating UK Manufacturing PMI for October, today has seen both the Composite and Services PMIs exceed expectations for the same month. The figures were of 55.4 and 54.9 respectively, up from 53.3.
ZAR/GBP Exchange Rate Lowered by Literal and Metaphorical Drought
The South African Rand (ZAR) has fallen against the Pound Sterling (ZAR/GBP) today and has suffered from a Euro uptrend to 15.1020 (EUR/ZAR) and a large 0.8% rise up to a rate of 13.8738 by the US Dollar (USD/ZAR).
In addition to the price of gold making only a minor uptick today, the price of platinum has continued its week-long decline to hit a low so far this month of almost $960. Adding to these commodity-based woes, the Rand has also been harmed by the Standard Bank PMI for October declining from 47.9 points to 47.5 (indicating further contraction) and the news that the country is facing the worst drought since 1982. According to Lennox Maboso, a spokesperson for the local government in KwaZulu-Natal (one of the afflicted regions): ‘It requires a lot of resources, and it’s impacting everyone, rich and poor’.
GBP/ZAR Exchange Rate Forecast: ‘Super Thursday’ for the UK Tomorrow, ZA Data due on Friday
The Pound Sterling (GBP) will have a clean field to initiate GBP/ZAR movement tomorrow as the next South African result, the October Foreign Exchange Reserves, isn’t due until Friday.
The Pound is likely to be shifted by the Bank of England (BoE) Inflation Report, Interest Rate Decision and accompanying Minutes tomorrow; no forecasts have been made for the BoE’s inflation estimate, but a rate freeze at 0.50% is a safe bet for the interest rate decision.
The most appealing release will therefore be the BoE’s minutes, which could reveal dissent among policymakers that would signal the first sign of a potential interest rate hike occurring earlier, rather than later, in the coming year.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 21.3700 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0468 today.