UK, US Meeting Ahead, GBP/ZAR Rate Falls

January 27, 2017 - Written by John Cameron

STORY LINK UK, US Meeting Ahead, GBP/ZAR Rate Falls

Sterling Rand Demand Takes a Hit on Data-Deficient Day for UK Economy

The Pound has recorded heavy losses in the GBP ZAR exchange rate today, falling by -0.4% in the pairing due to waning confidence in the UK’s economic future.

Although UK Prime Minister Theresa May has recently been in the US promoting the UK-US ‘special relationship’, investors have been put off by the apparent reliance the UK could have on its neighbours across the pond in the future.

Additional losses have been caused by the fact that May has been touting the UK as a ‘global Britain’ of free trade deals, something that sits poorly with Trump’s current protectionist rhetoric.

Near-Term GBP ZAR Shifts Possible on May’s Meeting with President Trump

Donald Trump is expected to remain in the headlines when it comes to the UK economy in the near-term, given how highly anticipated his meeting with Theresa May is.

This first direct conversation between the two officials will be closely watched by economists in the UK and the US, for any signs that the hopes of a stronger union between the two countries will be fulfilled.

Outside of this event, the Pound is next expected to be moved by domestic data on Tuesday, when January’s GfK consumer confidence figure is due. Covering January, this previously dropped by -7 points in December.

South African Rand Pound Exchange Rate Rises despite Troubling Metal Price Movements

The Rand has advanced against the Pound today but dropped against the Euro and US Dollar, following disappointing downwards shifts in the prices of nationally important precious metals.

While the price of copper has been fairly flat of late, both gold and platinum costs have declined, worsening prospects for South African mining exporters.

Domestic news has seen the South African Reserve Bank (SARB) leave interest rates on hold at 7%, something welcomed by economists in a time of high overall uncertainty.

South African Rand Pound Exchange Rate Shifts Tied to Trade Balance, Manufacturing Next Week

The next major South African data out will cover December’s trade balance; this news is expected on Tuesday. Previously, November saw a deficit figure of -1.1bn posted.

Elsewhere in the week, Wednesday morning will bring February’s Barclay’s manufacturing PMI for January, which was previously in the contraction range at 46.7 points.

Closing significant South African news on Friday will be January’s Standard bank PMI, which was in the growth range at 51.6 in December.

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TAGS: Daily Currency Updates South African Rand Forecasts