Homepage » News » EUR/CHF » Pound Sterling to Euro (GBP/EUR), Swiss Franc (GBP/CHF), South African Rand (GBP/ZAR) Exchange Rate Forecast: South African Unemployment Reaches 11-Year High

Pound Sterling to Euro (GBP/EUR), Swiss Franc (GBP/CHF), South African Rand (GBP/ZAR) Exchange Rate Forecast: South African Unemployment Reaches 11-Year High

The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to South African Rand (GBP/ZAR) exchange rates could all be in for some major movement this week with a host of domestic data scheduled for release.

UPDATE: Tuesday’s European trading began with the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to South African Rand (GBP/ZAR) exchange rates trending higher, while the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate softened ahead of UK CBI Reported Sales stats.

South African Unemployment Rate Hits 11-Year High – Rand (ZAR) Exchange Rate Weakens

The Pound was able to climb against the South African Rand (GBP/ZAR) after the South African Unemployment Rate jumped from 24.3% to 26.4% in Q1, the highest level in 11 years. After the South African nation was hit with rolling blackouts earlier this year, production has been hindered and unemployment has been able to rise.

Economist Francois Stofberg commented: ‘The impact of Eskom’s shortages on production has been underestimated. The question is how long it will be before investors look at our growth rate and decide to take their investments, and especially their capital investments, elsewhere.’

Additionally, South Africa’s Gross Domestic Product (GDP) Growth Rate managed to climb from 1.3% to 2.1% in Q1 on the year.

South African GDP Growth, Unemployment Rate Forecast to cause GBP/ZAR, EUR/ZAR and CHF/ZAR Fluctuations

Monday will be quiet as some European markets close for a bank holiday, but Tuesday will be more interesting for the GBP/ZAR currency pair with the release of South African Gross Domestic Product (GDP), Growth Rate and Unemployment Rate figures.

South African unemployment is forecast to climb from 24.3% to 25.0% in the first quarter and could be an event that pressures the South African Rand to Pound Sterling (ZAR/GBP) exchange rate lower. Additionally, the South African GDP growth rate has also been forecast to print unfavourably, slipping from 1.30% to 0.93% on the year in Q1.

Thursday could be another day for GBP/ZAR movement with the release of South African PPI figures. The annual ecostat is forecast to jump from 3.10% to 5.28% and may be able to offer the South African Rand exchange rate some support.

Swiss Franc to Pound Sterling (CHF/GBP), Euro (CHF/EUR) Exchange Rates Forecast for Swiss UBS Consumption Indicator and GDP Movement

Meanwhile, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate could fluctuate with the release of the Swiss UBS Consumption Indicator for April. The March figure had resided at 1.35 and any improvement in April could allow the Swiss Franc exchange rate to climb.

Thursday will be another influential day for the Swiss Franc with Swiss Trade Balance, Imports and Exports numbers all due out. However, things are really going to heat up for the Pound Sterling to Swiss Franc (GBP/CHF) and Euro to Swiss Franc (EUR/CHF) exchange rates on Friday with the release of UK, Italian and Swiss Gross Domestic Product (GDP) figures.

Greek Negotiations Weigh Heavily on Euro (EUR) Exchange Rate

Additionally, the Euro will fluctuate in accordance with any progression in talks between Greece and its creditors. The talks are expected to spice up trading this week with the Greek government expecting a deal to be made by June.

Last week, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trading at 18.5030. The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending in the region of 1.4543. The Pound Sterling to Euro (GBP/EUR) exchange rate was trending at 1.4061.