GBP ZAR and GBP EUR Exchange Rate Forecasts Improve

August 24, 2016 - Written by Tim Boyer

STORY LINK GBP ZAR and GBP EUR Exchange Rate Forecasts Improve

Gains for Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Following Alleged Arrest

The Pound Sterling (currency : GBP) has jumped in value against the South African Rand (currency : ZAR) following the emergence of a dramatic overnight news story on the South African wires.

Reports suggest that South African Finance Minister Pravin Gordhan, who has been responsible for a steadying on economic conditions in the troubled nation, is set to be arrested by an elite police unit. The situation relates to Gordhan’s time at the South African Revenue Service and in particular the alleged instigation of a culture of spying between the decade between 1999 and 2009 at the tax collection service.

Best Conversion Rate of 18.7370 Recorded for GBP ZAR Today

The Pound Sterling South African Rand exchange rate spiked to an intraday high of 18.7370 GBP ZAR – up by over 2% since the European session got under way – as a result. The Pound has also recorded decent gains against other major currencies today, with the Sterling euro exchange rate trading up by 0.61% and the Pound Dollar exchange rate breaking back above the 1.3200 GBP USD threshold.

Positive Post-Brexit Data Supports Pound Sterling (GBP) Exchange Rate Trading

Support for Pound Sterling (GBP) on the session was partly driven by figures published by the British Bankers' Association (BBA) which revealed that British consumers have continued spending on their credit cards in the wake of the decision by UK voters to exit the European Union. The data revealed that 168m credit card transactions had been effected during July - the first full month since the Brexit vote. This was higher than the counterpart number in June and greater than the 2016 average monthly figure. The BBA’s Chief Economist Rebeca Harding, stated that,

‘This month's statistics are the first set of borrowing figures gathered since the EU referendum. The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum.’

Medium Term GBP Exchange Rate Forecasts to Improve?

She went on to assert that, ‘We are also clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong consumer credit growth.’

Analysts forecast that Pound Sterling (currency : GBP) exchange rate forecasts may improve in the short-to-medium term as a consequence, potentially triggering a rise in GBP ZAR and GBP EUR.

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TAGS: Currency Predictions Daily Currency Updates Poun Forecasts