The European Central Bank decided to keep interest rates at record lows of 0% yesterday and continued to keep their monthly asset purchases at €80bn per month.
The absence of any change in monetary policy has caused a weakening of both the New Zealand Dollar and Australian Dollar vs Sterling as there was a small expectation that we could have seen some change.
Typically global investors will closely monitor interest rate decisions and as New Zealand has higher interest rates than Europe any interest rate cut would have typically strengthened the NZD but as this didn’t occur this has seen Sterling move above 1.81 on the Interbank level.
Next week on Tuesday the UK will release inflation data and if we see any positive signs then this could help Sterling gain even further against the New Zealand Dollar.
On Wednesday the UK announces unemployment levels and again this could cause volatility so if you’re concerned about the release and need to either buy or sell New Zealand Dollars then it may be worth organising this prior to next Wednesday.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]
I look forward to hearing from you.