Pound to South African Rand Exchange Rate Forecast: The South African Rand has remained under severe selling pressure

By on September 18th, 2012.
Connect with this author on

The South African Rand has remained under severe selling pressure over the past seven days, thanks to continuing violent clashes between the authorities and striking mine-workers.The South African Rand has remained under severe selling pressure over the past seven days, thanks to continuing violent clashes between the authorities and striking mine-workers.

Foreign Currency Market Update – GBP / ZAR Update

The South African Rand has remained under severe selling pressure over the past seven days, thanks to continuing violent clashes between the authorities and striking mine-workers. One piece of encouraging news for investors holding Rand-denominated assets came earlier today when workers at Lonmin’s Marikana mine reduced their wage demands down to ZAR11,000 per month. Lonmin is the world’s third largest platinum extractor, so any hint of a reconciliation between the company and its workers is positive for the South African tender. Last week’s bloody scenes at several SA mines helped send the GBP ZAR exchange rate to its highest level since August 2009, at 13.6122 early on Thursday.

GBP ZAR had recovered its poise by the end of the week to trade back down to 13.2543 on Friday afternoon. The Rand received a timely boost on Thursday evening when the US Federal Reserve announced that it was ramping up its Quantitative Easing programme once again; the US central bank revealed that it had elected to buy-up US$40bn of mortgage-backed assets on a monthly basis, for an indefinite time period. The news sent global share markets spiralling, providing support for high-yielding currencies including the South African Rand.

The fact that last Thursday’s 3-year high was so rapidly rejected by the market now sets it up as a key resistance moving forward. Any escalation of South Africa’s mining dispute could bring a renewed run at this key level, but consecutive closes above 13.6122 will be required to confirm an uptrend for the pair. Conversely, if tomorrow morning’s Bank of England minutes reveal that the UK’s nine-man monetary policy committee is considering more QE for the UK, or a trimming of British interest rates, then GBP ZAR could rapidly some under selling pressure. Last month’s key interim floor of 12.6045 will then provide an initial downside target for the pair.

Heads Up

Summary of major upcoming data releases that we think may move the market.

 

 

 

Related posts:

  1. Pound to South African Rand Exchange Rate Forecast: The Pound followed a steady decline against the South African Rand
  2. Pound to South African Rand Exchange Rate Forecast: The South African Rand was under pressure at the start of last week’s session
  3. Pound Sterling to South African Rand Foreign Currency Exchange Rate Forecast – Rand up on Record Gold Prices
  4. The South African Rand came under sustained selling pressure
  5. Pound Sterling to South African Rand Foreign Currency Exchange Rate Forecast

Article source: http://feedproxy.google.com/~r/ForeignExchangeOutlook/~3/VXWQH8A0Ggo/

Leave a Reply

WP2Social Auto Publish Powered By : XYZScripts.com
Bunk Beds