The Pound-to-South-African-Rand rate was trading around 18.24 at the beginning of the new week after closing the previous one -0.23% lower on Friday and studies of the charts suggest there's a risk of more downside ahead if a tough zone of support 17.89 gives way over the coming days.
The Rand tumbled Wednesday as investors became less pessimistic in their outlook for U.S. growth amid renewed hopes of a deal to end the trade war between the world's two largest economies, and local analysts are saying the South African will continue to take its cues from events in the U.S. over the coming weeks.
The Pound-to-Rand exchange rate is trading at around 18.15 at the start of the new week after declining 1.53% in the week before. Studies of the charts suggest a risk of more downside subject to a break below a tough zone of chart support at 18.00.
The South African Rand is looking set to record its fifth consecutive daily advance against the Pound on Tuesday, amidst ongoing weakness in the British currency whilst some better-than-forecast GDP numbers are proving supportive for the Rand.
The Pound-to-Rand exchange rate is trading at around 18.39 at the start of the new week after declining 1.4% in the week before and studies of the charts now indicate that the pair's recent short-term uptrend has probably reversed and is set to go lower.
South Africa's Rand ruled the emerging market roost Thursday amid renewed hopes the U.S. and China will return to the negotiating table, but the currency is tipped by InvestecBank to rise even further into year-end as the Federal Reserve (Fed) cuts U.S. interest rates.
The Rand was in retreat Thursday as the Dollar and other major currencies rebounded in response to another so-called inversion of the U.S. bond yield curve, which comes ahead of a landmark speech from Federal Reserve Chairman Jerome Powell that will set the mood for South Africa's currency in the coming weeks.
The Pound-to-Rand exchange rate is trading at 18.58 at the time of writing, down 0.80% on the day in line with broad-based Sterling weakness, however, the pair rallied 1.32% in the week before, and our technical studies of the charts suggest the pair will probably continue higher in the short-term.