Are GBP/NZD Rates Heading Above 2.20? (Matthew Vassallo)

GBP/NZD rates spiked aggressively during Tuesday’s trading. The pair has moved approximately 3 cents from low to high, hitting their peak earlier this afternoon at 2.1750. Today’s move is yet another example of how quickly and aggressively market conditions can change, without any real warning.

The Pound has gained some support over the past 48 hours and today’s move was exaggerated due to the latest Brexit poll, which had the Remain camp clearly in front. This follows a similar poll released last week and the markets are taking this as further evidence that the UK public are leaning towards remaining part of the EU. Regardless of our personal opinions this outcome seems to be the preferred choice of investors and it will certainly help to protect the Pound against any significant short-term losses.

However, I am still wary about making the assumption that the next few weeks will be plain sailing for the Remain camp and I wouldn’t be surprised to see further polls indicating any lead is narrowing. It was interesting to note that one of David Cameron’s close aids during his early rein as PM came out last week to support the Leave vote and I believe there are still many twists and turns to come before the vote on June 23rd.

Looking ahead and its Thursday’s UK Gross Domestic Product (GDP) figures which will be of keen interest and any positive reading could help to drive Sterling’s value up towards 2.20, although I still feel the NZD will continue to find support around this level under current market conditions.

If you have an upcoming GBP or NZD currency requirement and would like to be kept up to date with key market movements ahead of your transfer, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of my team for Matt. Alternatively, I can be emailed directly on [email protected]