Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Trends Narrowly as Sterling is Softened by Construction PMI
The Pound Sterling (GBP) has declined narrowly against the South African Rand (GBP/ZAR) today, mainly due to the UK Construction PMI for October printing a disappointing drop.
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PMIs at Dawn Tomorrow for GBP and ZAR
Continuing the theme of this week, the Pound (GBP) and the Rand (ZAR) will both be affected by PMI releases tomorrow: the UK Composite and Services PMIs and the South African Standard Bank PMI, both covering the October period.
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has flatlined today, although the same can hardly be said of the Pound’s notable advances elsewhere.
GBP/ZAR Exchange Rate News: UK PMI Upset sends Sterling Soaring Today
The Pound Sterling (GBP) has been at a stalemate against the South African Rand (GBP/ZAR) today, although impressive gains have been seen against a number of the Pound’s other rivals. These have included 0.5% against the Chinese Yuan (GBP/CNY) and the Indian Rupee (GBP/INR), 0.7% against the New Zealand Dollar (GBP/NZD) and over 1% against the Hungarian Forint (GBP/HUF) and the Russian Ruble (GBP/RUB). The most notable GBP loss has been by -3.2% against the Turkish Lira (GBP/TRY), owing to the latter currency rallying on ‘stable’ election results.
The main reason for Sterling’s astonishing rise today has been an unexpected advance in the UK Manufacturing PMI for October, which has increased from 51.8 to 55.5; a decline to 51.3 had previously been predicted.
Poor Results all Round Afflict the Rand’s Faring Today
Although it has fought off the Pound Sterling (GBP/ZAR), the Euro (EUR/ZAR) and the US Dollar (USD/ZAR) today, the South African Rand (ZAR) has otherwise suffered from a consistent lack of support coming from its economic releases. Today’s Barclay’s Manufacturing PMI for October has fallen from 49 points to 48.41, the price of gold has been on a steady decline since October 28th and the price of platinum has similarly been in a state of decline from the same date.
However, the US Dollar (USD) has been particularly soft this morning, therefore this could be a contributing factor to the current strength of the Rand.
GBP/ZAR Exchange Rate Forecast: UK Construction PMI due Tomorrow ahead of South African Bank PMI on Wednesday
In a similar situation to today, the next high-impact UK economic release will be tomorrow’s Construction PMI for October, which is similarly forecast to decline from 59.9 points to 57.74. Suffice it to say, investors in Sterling will be hoping for a repeat performance of today’s phenomenal growth.
Further ahead, South Africa will have input again on Wednesday with the release of the South African Standard Bank PMI. At the time of writing, no forecasts had been made, although the previous printing saw the figure remain below the 50 mark that separates contraction from growth.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 21.3020 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.0469 today.