Over the last month the NZD has strengthened over the majority of major currencies, with an 8% rise over Sterling. This is predominantly due to the uncertainty surrounding the EU referendum. The Reserve Bank of New Zealand have assisted with NZD’s rise over Sterling. They decided not to cut interest rates which boosted the New Zealand Dollar.If you are currently looking to sell NZD, it is a very favorable time to do so. To wait until after the referendum is a gamble and I would be tempted to take advantage of the rates as they stand.
Although the referendum is the key factor in any GBP/NZD trade at present we do have New Zealand GDP figures this evening which may cause slight movement in GBP/NZD buoyancy levels.
The referendum will have a huge impact on GBP/NZD. If the UK are to leave the EU I would expect GBP/NZD to drop to around 1.80 and if Britain remain in the EU 2.20 +. I can appreciate this is a massive gamble however. As mentioned earlier if I was selling NZD I would be tempted to move at present levels. If however you are considering on waiting until after the referendum it would be wise to consider hedging. If the market moves against you, you could be 20 cents worse off. Those buying property over this period could find themselves having to pay considerably more for their property.
If you would like to take advantage of rates as they stand, their is a contract which essentially allows you to “Buy now Pay later”. A time option contract allows you buy at today’s rates with a 15% deposit and pay the balance at a date of your choosing. If you would like more information on this type of contract please do not hesitate to get in touch.
If you have a currency requirement I would be happy to assist. I will provide an individual trading strategy to suit your needs. I will also endevour to beat any competitor’s rate of exchange. I can be contacted at email@example.com .