GBP/NZD rates have dropped today, with the NZD gaining almost 2 cents since the start of European trading. Looking back and we’ve had a fairly flat market on the pair for the past month, with a small improvement for the NZD.
Today’s GBP losses have come about due to yet another poor set of UK economic data releases, in the form of Industrial & Manufacturing Production. These both came out under expectation and when you add the positive New Zealand data that was releases overnight in the form of the ANZ Commodity Price index, then is easier to understand why we have seen a downtrend today.
However, it is the bigger picture that is more concerning for those clients holding Sterling, as a run of poor data across the board has put pressure on the Pound and I can see the NZD making a small recovery over the coming days. With GBP/NZD trading around 2.205 rates are still looking attractive but due to the recent downturn we may see this drop in the short-term.
Longer-term I still feel the NZD will struggle to make a move back towards 2 whilst the economic problems in China, one of their largest trading partners, continues. Due to Australia’s reliance on China their economy is also faltering and this generally has a knock on effect in New Zealand as well.
If you have an upcoming NZD transfer and would like to discuss the current market conditions and forecasts, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 725 353 and ask for Matthew Vassallo. Alternatively, you can email me directly on [email protected]