Sterling Breaks 2.15 against the New Zealand Dollar (James Lovick)

The pound has seen an excellent spike against the New Zealand dollar having climbed almost 2% in a single day. This is on the whole a sterling story as the recent and sudden strength in the pound has been seen against all of the major currencies including the Australian dollar which also saw a similar move.

The rise in the pound can be attributed to improving unemployment numbers yesterday which saw an improvement in those claiming benefits. Most importantly however there was an increase in wage growth, something the Bank of England monitors very closely.

The Bank have repeatedly stated that wage growth is one factor which will influence when it decides to raise interest rates. There is another factor which has also helped to strength the pound and that is the release of the latest EU referendum poll which has put the Remain campaign a long way in front. The combination of all these factors have helped see the pound see a real drive higher. There is an excellent opportunity to buy New Zealand dollars at this point.

For anyone selling New Zealand dollars it may now be harder to see a return to those better levels seen in April with this recent bout of sterling strength. However I am still of the opinion as we approach 23rd June there will be considerable headwinds for the pound. I don’t see this referendum as a dead cert either way and as more and more polls are released there should be high volatility on the back of them with sterling weakness likely.

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]