We have seen a spike for the Pound against NZD of late. This is predominantly due to a large increase in mortgage approvals. Many who own several properties have decided to sell them off to avoid the 3% increase in stamp duty to be implemented on April 1st. I feel Sterling’s rally will be short lived, There are two key events that I feel will hold back any significant Sterling rally. The budget on 16th March and the pending EU referendum.
George Osborne is set to make some large cuts due to global economic uncertainty and that should cause Sterling to drop in value. The bigger problem for Sterling however is the pending EU referendum. Boris Johnson has backed a Brexit along with other key conservative figures, namely Michael Gove and Ian Duncan Smith which seems to have influenced a significant number of the UK population in favour of a EU exit. If the UK were to leave the EU it would put significant strain on trade relations with European countries. HSBC recently predicted that if the UK were to leave the Pound could drop by as much as 20%.
Simply put of you are a NZD buyer it would probably wise to move sooner rather than later. If you have a currency requirement I would be happy to assist. I am prepared to beat any competitors rate of exchange, please do get in touch for a free, no obligation quote. I can be reached at [email protected].