Pound Rand (GBP/ZAR) Exchange Rate Edges Higher on UK Data

March 31, 2015 - Written by David Woodsmith

STORY LINK Pound Rand (GBP/ZAR) Exchange Rate Edges Higher on UK Data

The Pound Sterling to South African Rand exchange rate strengthened by around 0.20% during local trading.

After British economic data produced a positive set of results, the Pound strengthened versus many of its most traded currency rivals. The advance has been somewhat sluggish, however, with the forthcoming general election weighing on investor confidence. The South African Rand, meanwhile, softened versus many of its most traded peers despite the trade deficit narrowing. The general declination is as a result of tracking Euro losses as the threat of a Grexit weighs on demand for the single currency.The Pound Sterling to South African Rand exchange rate is currently trending in the region of 18.0150.

Pound Sterling Exchange Rate Strengthens on Q4 Growth

With the general election weighing on demand for the British asset, domestic data has had a minimal impact on Sterling over the past few weeks. With opinion polls giving no clear indication as to a majority vote, the possibility of a hung parliament could see a very dramatic change in policy. However, Tuesday’s economic data did have an impact thanks to bettering estimates significantly. One such positive result was fourth-quarter Gross Domestic Product which registered a growth of 3.0% on the year, eclipsing the median market forecast growth of 2.7%. Apart from the obvious upward revision to growth giving Sterling a boost, political uncertainties could potentially ease a little as the conservative party has leant on their success in economic growth as a way to win votes. George Osborne, the chancellor, seized on the news. ‘Hat trick of good news just out from ONS: GDP revised up, consumer confidence up, living standards up,’ he said in a tweet. The Pound Sterling to South African Rand (GBP/ZAR) exchange rate dropped to a low of 17.9020.

South African Rand Exchange Rate Edges Lower on Soft Euro

South Africa’s trade deficit narrowed from -24.22 billion to -8.48 billion in February, but the data had little by way of impact as the Rand tracks Euro losses. The strength of the US Dollar also negatively impacted on the Rand due to a lack of demand for emerging-market currencies. The positive trade balance data is linked to a fall in the volume of imports led by low crude prices. ‘For the rest of 2015 we expect exports to recover and that should help us to record a lower trade deficit,’ Isaac Matshego, an economist at Nedbank Group Ltd., said. ‘All of this depends on the avoidance of major production disruptions.’

Pound Sterling to South African Rand Exchange Rate Forecast to Hold Gains

Given that the Euro looks set to continue to decline, and with a lack of domestic data to curb the trend, the Pound Sterling to South African Rand exchange rate is likely to hold gains for the remainder of the European session. The Pound Sterling to South African Rand exchange rate climbed to a high of 18.0900.

Top Rand Exchange Rates Today

The Pound to South African Rand conversion rate is +0.23 pct higher at 18.01879 GBP/ZAR.
The Euro to South African Rand exchange rate today is converting -0.76 per cent lower at 13.04759 EUR/ZAR.
The US Dollar to South African Rand exchange rate converts -0.04 per cent lower at 1 USD is 12.13611 ZAR.
The Swiss Franc to South African Rand exchange rate converts -0.25 per cent lower at 1 CHF is 12.51623 ZAR.
The Canadian Dollar to South African Rand exchange rate is -0.16 pct lower with a conversion rate of 1 CAD equals 9.56198 ZAR.
The Hong Kong Dollar to South African Rand exchange rate converts -0.02 per cent lower at 1 HKD is 1.56534 ZAR.
The Australian Dollar to South African Rand exchange rate converts -0.37 per cent lower at 1 AUD is 9.25864 ZAR.
The New Zealand Dollar to South African Rand conversion rate is -0.08 pct lower at 9.09559 NZD/ZAR.

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