The GBP to ZAR exchange rate is currently range-bound.
Key drivers include the interest rate differential, with the Bank of England expected to lower rates while the South African Reserve Bank may also ease monetary policy, though at a different pace. Economic growth projections in both regions are modest, with the UK's growth slowing and South Africa's showing slight improvement supported by better infrastructure.
In the near term, GBP/ZAR is expected to trade within a stable range given its recent performance, sitting at 90-day lows near 22.35, which is below the 3-month average.
Upside risks for GBP include potential better-than-expected retail sales figures, which could support the pound. A downside risk involves increased concerns over UK fiscal policies, which could further weaken the pound. Additionally, fluctuations in oil prices, currently below their average, could also impact the South African Rand's strength.