GBPNZD rates have remained volatile and generally negative over the last 30 days. Buying the New Zealand Dollar has become over 3% more expensive since the end of March and I am afraid to say that this trend is likely to continue. Over the Year to Date it has dropped nearly 8% and over the last 6 months by closer to 13%. It again seems rather clear that this negative trend will continue. As a result if you have NZD to buy it may be worth moving sooner rather than later.
If you would like some live prices and forecasts please contact myself STEVE EAKINS via [email protected]
So why are rates dropping?
The general reason for this has been both NZD strength and GBP weakness. Many will be aware of the facts that the Pound has fallen out of favour with many traders as they pull out in anticipation of the uncertainty being created by the Brexit in nearly 2 months’ time. The new Zealand economy, even though it has its concerns is still strong and returns there are greater than in the UK. Also China which has close links to New Zealand and an impact on its currency similarly to that of the Australian economy has started to perform better.
Moving forward in New Zealand we have to continue to watch the price of both meat and milk as big exporters. Plus as the referendum on the UK’s membership in the EU heats up this will also have an impact.
Generally speaking there seems to be a very strong argument to suggest that rates will be dropping further rather than climbing. As a result you have to have a very strong argument to want to wait with a hope of things improving, you certainly should not pin your financial future on a wish and pray with such a strong economically based argument to suggest things are getting worse.
However – rates do not move in a straight line. It is the task of timing a transfer even with the ups in the market which will give you the best prices.
Next on the horizon is the UK Unemployment data and Retail Figures. These are expected to give the pound a boost so if you have an New Zealand dollar transfer to buy and want to avoid the risk of rates falling, and are waiting for the next SPIKE, this could be available to you in the very near future.
To register for such updates please contact myself, Steve Eakins at [email protected]