We have seen the South African Rand make some fairly hefty gains against Sterling over the past few months. This report looks at what could be in store for ZAR this week. In the table below you can find high to low GBP/ZAR movement and the difference when exchanging £200,000 to South African Rand in the last week.
|Currency Pair||% Change||Difference on £200,000|
Back in November GBP/ZAR sat around the 19 mark and at the time of writing this report GBP/ZAR levels were settled just above 16, a drop of just over 15%. This would mean on a £200,000 exchange to ZAR you would currently be achieving ZAR 480,000 less and this just goes to show how volatile this particular currency is.
It does appear that Political issues may have now settled slightly following the removal of President Zuma and the arrival of new President Ramaphosa.
This political uncertainty had weakened the Rand for quite some time but now that this matter has currently cleared a little, the Rand is starting to fight back and gain back a lot of the ground lost.
Political uncertainty is fairly common place in South Africa however, so it wouldn’t be a great surprise to see the Rand suffer due to this again later in the year, so if you are looking to sell South African Rand in the near future then this current movement could be a great opportunity for you.
The most important release for South Africa this week will be Trade Balance figures, due out at midday tomorrow. Expectations are for the figure to come out at -5.0bn following on from a good solid surplus of 15.7bn last time out.
A negative figure or deficit of Trade balance can lead to weakness for a currency so if analyst’s expectations are right then Sterling may claw back a bit of value over the Rand on Wednesday lunchtime.
On Thursday morning we have the release of PMI (Purchasing Managers Index) at 9am, which can be a good indicator on the economies general economic activity so can lead to market volatility depending on how good or bad these figures are.
The Rand is an extremely volatile currency but it does seem to be on a good run at present, Good solid Sterling news, bad South African economic data or more political unrest in South Africa is what is needed to turn this current trend back around, so if you are looking to buy ZAR in the near future this is a market that you need to be watching extremely closely as it changes very quickly.
If you have Rand to buy yet do not have time to watch the markets all day every day then it may be prudent to register with us and let us do that for you. Feel free to contact us today on 01494 725353 and we will run you through the quick and simple process of having an account set up which will also give you access to rate alerts and many other handy market tools.