The pound has maintained most of its gains against the New Zealand dollar which are over 10 cents higher now since the low on the 24th June, the day of the referendum outcome in Britain. This is welcome news for anyone buying New Zealand dollars. The pound has struggled to gain higher this week however after stronger New Zealand trade data earlier in the week which has helped support the kiwi.
Selling New Zealand Dollars?
With few economic releases this week eyes now look to ANZ business confidence figure released on Friday which could help set the tone. Next week however is far more interesting with New Zealand employment data and a hugely important UK meeting.
As far as GBP NZD is concerned the Bank of England meeting in the UK next Thursday is absolutely paramount. The general expectation is that the Bank of England will take action and there is likely to be a symbolic interest rate cut probably by 0.25% which will take Britain’s interest rate to record lows. Remember the central bank made no changes at the July meeting so there is a degree of pressure for the bank to act at this time.
It will very much depend on the inflation outlook also released on Thursday as to how things develop. A high inflation outlook could make the bank nervous to cut rates although I believe the will be there for a rate cut or possibly a further bout of Quantitative Easing. For anyone selling New Zealand dollars there could be some good opportunities if any action is announced. It may be sensibvle to
If you have an upcoming GBP or NZD currency requirement in excess of NZD10,000 and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com