US retail sales and strong Eurozone data today have aided the New Zealand Dollar in the latter part of the trading day. GBPNZD exchange rates started on a strong footing at 1.80 this morning despite strong New Zealand retail sales overnight.
US data raises fresh concerns over the global economy
The poor US retail sales raised concerns over the global economy in a post-Brexit environment, typically where global demand slows, commodity currencies rise where interest rates are generally higher. This explains in some part the fall in GBPNZD rates which have fallen back to the 1.78 range.
Eurozone data puts further pressure on Sterling
Today’s Euroone data can also be attributed to the sudden fall in rates, whilst investors gauge the impact of Brexit on both the UK and Eurozone, it would appear that the UK and thus Sterling, is having a negative impact on The Pound’s value. With this in mind, there is a strong argument that Pound to New Zealand Dollar rates may make further losses next week.
Economic releases for the UK next week to cause further volatility
With the continuous news of economic slowdown within the UK, poor PMI data and the Bank of England’s decision to cut interest rates, it would come as no surprise to see negative data following next week’s consumer price figures. Housing prices have already taken center stage within the media outlets, housing price data from Rightmove and DCLG are likely to follow a similar trend.
With this in mind, i am expecting further losses to Sterling next week which could push rates below 1.78, ranges not seen in over a decade. If you are a NZD seller, get in touch with me over the weekend to discuss your requirements in more details. You could well be in for an opportunity of a life time. My email address is [email protected].