The Pound South African Rand (GBP/ZAR) exchange rate eased by -0.4% this morning, with the pairing currently trading around R19.008 as UK markets become increasingly jittery over the prospect of a cliff-edge Brexit crisis next year.
This follows news that Prime Minister Boris Johnson is attempting to write into a law that the UK will leave the EU in 2020 without options to extend the implementation period.
The newly elected House of Commons is due to go ahead on a vote on Johnson’s new plan this Friday, which is leaving some Pound traders feeling nervous of the increasing prospect of a no-deal Brexit next year.
Mark Carney, the Governor of the Bank of England (BoE), was less negative, however, saying:
‘The worst-case scenario is effectively a no-deal, disorderly Brexit. The probability of that scenario has gone down because of the election result and the intention of the new government.
The GBP/ZAR exchange rate could further weaken today if Mark Carney’s speech, due at 19:15 GMT today, shows hints at any potential slowdown in the British economy ahead of the New Year.