The New Zealand dollar has seen a wave of strength against most currencies including the pound since Wednesday as a result of the sudden rise in the price of oil. The price has increased as a result of the wildfires in Canada which has reduced supply in the world as well as reduced supply from Nigeria which has had series of problems including attacks on oil facilities. Both the Australian and New Zealand dollars have rallied on the back of the spike. Going forward there may not be too much room in this rally as it is widely expected that the production will resume very quickly and the price of oil will fall back down again. Changes in Saudi Arabia may also keep the price of oil that much lower and keep the New Zealand dollar in check. Data is light in New Zealand for a while with just producer prices next week so the kiwi is more likely to be driven on global developments including news from China.
For anyone selling New Zealand dollars for sterling there are likely to be some better opportunities in light of the looming EU referendum in Britain. The pound is likely to see some pretty serious headwinds as we approach 23rd June especially as the campaigning is already becoming more substantial, especially from the Leave side.
If you have an upcoming GBP or NZD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at [email protected]