NZD Holds Strong Against Pound, Despite Interest Rate Threat

GBPEUR Rejected by 1.17 Price Level Again

The NZD dollar is holding strong against the pound currently, much like many currencies at the moment. This is still despite the outlook from the Australian Commonwealth Bank and the general attitude of the Royal Bank of New Zealand.

One of New Zealand’s biggest exports is dairy and for the fourth auction running there was a decrease in the price which is starting to cause concern. This was coupled with a weaker than expected retail sales, which was 1.2% instead of 1.5%.

Considering the weaker figures the GBP/NZD has been in the NZD’s favour. There is expected to be an interest rate decrease in New Zealand in the coming months as the Royal Bank of New Zealand has a mandate to keep inflation between 1-3%. Inflation fell to 1.63% last month which is getting close to the bottom of the target rate therefore causing the RBNZ to potentially react.

If you’re looking to sell NZD, this is one of the best windows since June 2015 and I suggest getting in touch to find out what options are available to you.

Please contact me if you would like to find out any further information regarding Pounds and NZD. I am happy to provide you with information that will allow you to make the most informed decision when changing currencies. No matter how small the transaction there is always money to be saved by making a well-timed and educated decision. If you would like to get in touch email me Ben Fletcher at [email protected] and hopefully I can be off assistance to you.