GBP/ZAR Exchange Rate Improves as UK House Prices Improve
The Pound (GBP), meanwhile, failed to benefit from today’s release of the annual Halifax house prices figures for June.
These improved to their best since early 2017, rising from 5.2% to 5.7%.
Russel Galley, a Managing Director at Halifax, commented:
‘With the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.’
The ongoing Tory leadership race will remain in focus today, with tomorrow seeing the votes open up for the party’s 160,000 members to choose the next leader of the Conservatives.
Brexit fears are once again ramping up, however, as Boris Johnson – the leadership favourite – recently commented that the £39bn ‘divorce bill’ that the UK could secure in the event of a no-deal could potentially be used for his lavish spending pledges.
Mr Johnson said:
‘It may have escaped your notice, but in the event of a no-deal Brexit, we will have an additional £39bn to spend.’
GBP/ZAR Outlook: Brexit and Tory Leadership Developments in Focus
South African Rand investors will be paying close attention to US-China trade relations next week.
Any signs of a US-China trade deal could provide some uplift for the risk-averse ZAR.
Pound traders, meanwhile, will be awaiting Tuesday’s BRC annual like-for-like retail sales figures for June.
These are expected to improve from the previous -3.0% to 0.8%.
Tory leadership developments and Brexit will also remain in focus.
The GBP/ZAR exchange rate could begin to fall on Brexit jitters if the new leader shows any signs of pushing forward with a no-deal exit from the European Union.