New Zealand Dollar Shows Further Gains (Ben Fletcher)

The last day of May and the first day of June has brought a 7 cent gain for the NZD against Sterling. Last week Sterling rose to a month high of the back of an Ipsos Mori Referendum poll indicating the Remain campaign had a significant lead.

However the start of this week has shown the champagne should stay corked for the time being after the Guardian published a poll which favoured the Leave Campaign. No doubt there will be contradicting opinion polls in the coming few weeks, especially as the data set is rarely above 1000 respondents.

There has been some recent internal Services PMI which showed an improvement for the NZD. This has provided some confidence in investors that the Reserve Bank of New Zealand may hold of cutting interest rates any time soon. If the Kiwi does move to some of the levels seen in the last few months around the 2.06 level, I would be surprised if the option to cut rates is not taken eventually.

If you are looking to sell NZD into Sterling the next 22 days may present one of the final opportunities to achieve a low rate. If the UK remain in the EU it seems very apparent that GBP/NZD rate could move back towards the 2.20 levels by July.

If you have any questions with regards to currency and how I could help you achieve the rates discussed above, please send me an email at [email protected].