The pound has found support at these lower levels against the New Zealand dollar after the sharp shock in the value of sterling on Friday following the UK’s decision to withdraw from the EU. For anyone selling New Zealand dollars there is clearly an excellent opportunity to sell currency at this time.
The New Zealand dollar is almost 8% higher against the pound this time last week. To put that into real money a conversion of NZD200,000 will now generate £8500 more in the space of a week.
This is a huge movement but the pound is now looking particularly stable for the moment and this may be as far as it will fall for a period of time. To highlight this, in a sign of confidence for the pound the FTSE index has returned to levels seen just before the referendum result which could mean better times are on the horizon for sterling exchange rates.
Not only has Australia stated its intention to set up a trade deal with the UK but New Zealand is also offering to help the UK negotiate trade deals with the EU in the hope that the UK will make a trade deal with New Zealand in return. This could be good for both the UK and also New Zealand and hence the individual currencies and I’m sure there will be more from this story to come.
Anyone needing to buy New Zealand dollars may wish to see how the dust settles as there are lot of positive noises being made in the UK right now which should see the pound strengthen going forward. Clearly Britain has just decided to leave the EU and it would be a mistake that the pound will go from strength to strength. Britain is in for a very turbulent time and there will be more financial shocks to come from all of this.
Everything will depend on British negotiations with the EU which will also revolve around the hot potato of freedom of movement so there will be considerable more volatility to come as development keep unfolding.
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]