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British Pound to South African Rand Exchange Rate Dips, GBP/ZAR, USD/ZAR Down after Trade Data

June 30, 2015 - Written by John Cameron

FX Newsflash: Rand Gives up Some of its Recent Gains as Greece Defaults



Although Greece missing its repayment to the IMF isn't being deemed a technical default, the Euro still lost around 100 pips on Tuesday night. Higher-risk currencies like the Rand fluctuated as Greek PM Alexis Tspiras reassured markets that a 'no' vote in Sunday's referendum didn't necessarily mean an exit from the Eurozone.

Earlier...

Exchange Rate Outlook: Rand Exchange Rate Recovers On Improved Risk Appetite, Greek Fears Subside



Earlier in the week the South African Rand plummeted against the majority of its most-traded currency counterparts as investors fled from higher-risk currencies amid concerns Greece is on course to be expelled from the Eurozone. Higher-risk and emerging-market assets like the South African Rand, Indian Rupee and New Zealand Dollar bore the brunt of the widespread bout of risk-aversion but the Rand was able to recover some of its recent losses on Tuesday. With Greek officials rumoured to be in deal talks, and ‘Grexit’ fears subsequently easing, an element of risk-appetite returned to trading.

Currency Dealer Ion de Vleeschauwer commented; ‘The uplifting talk from some European officials has calmed market fears but there is nothing official at this point.’


Surprise South African Trade Surplus sees ZAR Jump against GBP, USD, EUR



The Pound Sterling to South African Rand (GBP/ZAR) and US Dollar to South African Rand (USD/ZAR) exchange rates both declined by more than 0.8% on Tuesday as the appeal of the emerging-market currency was significantly improved by South Africa’s latest trade data. A jump in vehicle exports and a slide in machinery imports meant that the nation was able to record a 5 billion Rand trade surplus in May – up from a deficit of 1.4 billion Rand the previous month. Imports declined by 7.4% last month while exports climbed 4.6%. The data raised hopes that the current account deficit may also narrow and lent the Rand support.

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According to one Johannesburg-based industry expert; ‘We have not had any big strikes this year and it definitely has an impact on South Africa’s ability to export. This is positive in the short term, but South Africa would need positive trade numbers for some time before it will provide permanent support for the Rand'


FX Forecast Today: GBP/ZAR, EUR/ZAR, USD/ZAR Exchange Rate Movement Forecast to Follow Manufacturing Data



Greece will remain the hot-topic as the week continues, although Friday’s US Non-Farm Payrolls report is also likely to have a direct impact on Rand trading. However, investors with an interest in the GBP/ZAR, EUR/ZAR and USD/ZAR exchange rates will also be focusing on South Africa’s upcoming KAGISO Manufacturing PMI, Total New Vehicle Sales Report and Consumer Confidence Index.

The GBP/ZAR exchange rate was trending in the region of 19.0610

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TAGS: Currency Predictions Dollar Pound Forecasts South African Forecasts

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