Currency News

Daily Exchange Rate Forecasts & Currency News

Pound to Rand Exchange Rate (GBP/ZAR) Strengthens, Swedish Krona (SEK) Rallies vs Sterling

July 27, 2014 - Written by Tim Boyer

Currency News UK: Pound to Rand Exchange Rate (GBP/ZAR) Strengthens, Swedish Krona (SEK) Rallies vs Sterling - The Krona to Pound (SEK/GBP) recovered ground on Friday after data released earlier in the session showed that retail sales in the Nordic nation increased more than expected. The South African Rand (ZAR) was continuing to be supported by optimism that a damaging metalworkers strike could end over the weekend.

According to Statistics Sweden, the nation’s retail sales increased more than forecast in June, reversing the decline seen in the previous month. Sales grew by a seasonally adjusted figure of 0.5% on a monthly basis, countering the -0.7% decline seen in May. The figure was better than the 0.4% sales growth number expected by economists.

On an annual basis retail sales advanced by 3.3% in June, adding to the 3% growth figure recorded in the previous month. The figure was again better than economist’s expectations for a figure of 3.2%. The sale of consumable goods increased by 0.4% whilst the sale of durable goods advanced by 5.9%. On a quarter by quarter basis retail sales increased by 1.1%.

Another report also lent support to the Krona as it showed that the number of household loans increased by 5.4% on a year on year basis in June as housing loans rose sharply by 5.7%. I May loans to households rose by 5.3%.
Sweden also saw its trade balance swing into surplus territory as exports rose faster than imports in June. According to Statistics Sweden the nation’s foreign trade balance posted a surplus of SEK 5.2 billion in June. That followed a SEK 0.2 billion deficit in May. The surplus was SEK 3.9 billion in the same month last year.

Exports were shown to have increased by 7% whilst imports increased by 6%.

The data also hinted at an improving picture in the Eurozone as Sweden’s trade deficit with the single currency region narrowed from 10.5 billion to 7.8 billion. The positive sales and trade data sent the SEK higher against Sterling and other major peers as negative sentiment towards the country’s economy eased.

The South African Rand meanwhile was maintaining its recent run of gains against the Pound as optimism remained high that a strike in the African nation’s metalworking industry could be ended by the weekend. Also offering support were comments made by Reserve Bank of South Africa Governor Gillian Marcus who said that the bank will do what it can to aid the economy.

“The MPC will remain focused on its core mandate of price stability, but will also be mindful of the impact of its policy actions on economic growth. Many of the problems that the country faces are not within the purvey of the bank’s mandate, nor does the bank have the proxy levers to address these issues”, Marcus said.
Advertisement

The Pound pushed higher against the Euro and several other major peers on Friday after GDP data came in as economist expected. According to data released by the Office for National Statistics, the economy has recovered to pre-crisis levels by expanding by 0.8% in the second quarter of the year.

The news was given a muted welcome by Chris Williamson, Markit's chief economist: "Any celebrations will of course also be marred by the fact that the milestone reminds us that it has taken some six years for the country to merely regain the economic might it had before the financial crisis struck."

GBP/ZAR Update 28/07/2014



The Pound to Rand exchange rate (GBP/ZAR) strengthened broadly as a strike in South Africa’s metals and engineering sectors dragged on for another day. The striking NUMSA union is set to announce whether it accepts an offer from employers to end the month-long wage dispute. A failure to do so will weigh heavily on the South African Rand.
Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: Currency Predictions Daily Currency Updates Sout Forecasts

Comments are currrently disabled