GBP/NZD exchange rates have been on a rollercoaster this past two weeks. Hitting 2.10 at its lowess and going up above 2.20 at its highest – making planning near on impossible for transfers.
All of this is down to the intricate movements on British polls for the upcoming Referendum. These are released daily, and this recent negative rally began on Tuesday afternoon with the release of a poll in the guardian reflecting an increase in the vote share for the Leave camp, markets are becoming increasingly nervous.
Polls will continue to come out and markets will continue to act in a nervous fashion. Frankly, data releases at this point will simply seem like background noise, the Referendum will dominate headlines even more than it has done up until now.
Three scenarios will affect exchange rates. If polls remain as they are, or if they begin to favour one side or the other. The only scenario where rates will go up is if the Remain camp get a larger lead. If the polls stay as they are, or if the leave camp gains more ground, markets will be too nervous to hold onto their Sterling and a mass sell-off will ensue, causing the Pound to lose value heavily on the marketplace.
Its impossible to predict the polls, so with a general idea that 2 in 3 scenarios will cause the Pound to lose value, New Zealand Dollar buyers may be wise to move sooner rather than later. [email protected] 01494 787 478