GBP/NZD rates have crashed during Tuesday’s trading, with the Pound coming under further pressure during afternoon trading. We had seen Sterling start to make a recovery after a difficult couple of weeks but following Bank of England (BoE) governor Mark Carney’s speech today, GBP/NZD rates have dropped at an alarming rate. The pair now sitting just below 2.19 having hit a high of 2.2198 earlier today, providing NZD sellers with an excellent window of opportunity.
The reason we have seen rates drop is due to a negative trend, which was started by a run of poor UK economic data releases. This was intensified today following Carney’s speech, where he stated that UK interest rates did not need to be raised for some time. Whilst no one expected an imminent rate hike, the fact it has been so shut down by our central bank will cause investors to look elsewhere for profit taking and does not breed a lot of confidence in the UK economic outlook.
Looking ahead and there are some key data releases to look out for this week. Tonight we have inflation data for New Zealand, before the official UK unemployment rate tomorrow. UK Retail Sales figures on Friday aren’t not looking positive and this could heap further pressure on the Pound. We need to consider the negative effect China’s woes are having on the New Zealand economy but despite this, the Pound’s negative spiral could continue.
If you have an upcoming currency requirement and would like to compare our award winning exchange rates with your current provider, or would like discuss the current market conditions and forecast, then please feel free to contact us on 0044 1494 725 353 and ask them to direct your call to Matt. Alternatively, I can be emailed directly on [email protected]