Will GBPNZD fall below 1.70?

The rates to buy Kiwis with pounds has plummeted in the last few weeks as fears and worries over the UK Brexit and impact on the UK weighs on the pound. The outlook for the UK remains poor since we know very little about just what is around the corner for the UK politically and this political uncertainty will very likely weigh on the UK economically. We are also concerned about the figures for the New Zealand economy but nowhere near as much as we are for the UK!

What is most alarming for anyone buying Kiwis should be the fact that any cuts in interest rates are unlikely to dramatically weaken the currency since interest rate cuts have been doing very little to the currency. New Zealand is enjoying a property market boom and has been mooting some fairly stringent deposit requirement for any one buying property over there.

The rate cuts have done little to make the currency weaker as investors continue their never ending search for a return on their investment, With most central banks operating razor thin interest rates or even negative rates the Kiwi remains a very attractive proposition and will continue to do so against a much weaker pound.

If you have a requirement to buy or sell the pound then please speak to me Jonathan about the best course of action to help limit your exposure to the currency markets and ensure you get a good deal. Please email me jmw@currencies.co.uk to learn more.