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Pound to Rand Exchange Rate Today: GBP/ZAR Edges Higher

November 4, 2014 - Written by Ben Hughes

The British Pound to South African Rand (GBP/ZAR) exchange rate was little moved on Tuesday as investors sat back into a waiting pattern ahead of key Euro and US Data releases due later in the week.



gbp zar exchange rateThe GBP/ZAR exchange rate saw little movement even as the European Commission announced that it had revised it growth forecasts for the struggling Eurozone.

Despite the announcement, the currency pair experienced little movement as the news failed to stimulate trader action.

The Pound Rand conversion rate is -0.18 pct lower at 17.65699 GBP/ZAR.
The Euro Rand exchange rate is +0.09 pct higher with a conversion rate of 1 EUR equals 13.84412 ZAR.
The Dollar Rand exchange rate today is converting -0.34 per cent lower at 11.03500 USD/ZAR.

ECB Slashes Euro Area Forecasts



The European Commission slashed its forecasts for economic growth in the 18-nation Eurozone to 0.8% this year, from 1.2% in the spring. It predicts the economy to grow by 1.1% in 2015, down from 1.7% previously.

The commission also said that it expects inflation in the Euro area to remain below the ECB’s target of close to but just below 2% until at least 2016. It also warned that unemployment levels would remain at their current high levels for longer than previously hoped.

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‘The legacy of the global financial and economical crisis lingers on. Slack in the EU economy remains large and is weighing on inflation, which is also being dragged down by tumbling energy and food prices,’ said Marco Buti, head of the commissions economics department.

Rand Exchange Rate Unchanged vs Pound by UK Data



Softer economic data out of the UK, which showed that activity in the UK’s construction sector slowed in October also, had little influence on the Rand.

The PMI report compiled by Markit showed that the construction sector expanded at its weakest rate in five months. The PMI declined to 61.4 from the preceding month’s figure of 64.2.

Movement of the Rand may have been restrained ahead of key data due later in the week but domestic data showed that tax revenues in South Africa increased by 10.6% in the 2013/14 fiscal year as more people paid income tax.

‘Growth in domestic VAT (value added tax) payments remains constrained by high consumer debt, modest job creation, low consumer confidence and little real growth in disposable income,’ South Africa’s revenue service said in a statement.

In all, tax revenues totalled 900 billion Rand for the year ending in March 2014. The improved tax income news did little to spur movement of the currency.

With little in the way of domestic South African data due this week the Rand’s movements will depend on data releases out of the US and Europe.

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