GBP/NZD rates have dropped below 1.70 on the exchange, providing NZD sellers with the best rates they’ve seen in over 10 years!
This is huge opportunity and one that we did not foresee despite the recent downturn for the Pound. The NZD is benefiting from improved exports and the downturn in the UK economy but with our Brexit cards now laid firmly out on the table, are we seeing the Pound bottom out?
UK employment data did little to boost the Pound today, with the official figure coming in at 4.9% as expected. We have the latest European Central Bank (ECB) interest rate decision and subsequent monetary policy statement, which is likely to have a big impact on GBP exchange rates. This alongside UK Retail Sales figures are considered key economic releases by investors, so expect additional market volatility for Sterling as we head towards the end of the trading week.
My overall feeling at the moment is that the Pound is suffering due to the unique situation the UK finds itself in and the uncertainty that corresponds to this. We will no doubt find out more information about how we will facilitate our Brexit and the trade deals that may go with this and as each facet of this uncertainty is removed, the Pound is far more likely to gain enough support to drive it’s levels up.
In my opinion the markets have now, to some extent, factored in the UK’s decision to exit the EU and this will be integrated into the current GBP/NZD exchange rates. Whilst the Pound is clearly fighting an uphill battle, UK Prime minster Theresa May has laid her cards on the table and therefore there is an argument to be made that the only way is up for Sterling?
However, whilst we are in this position of economic limbo it would be wise to protect any Sterling positions and avoid the market uncertainty sapping any more value from your Pounds.
If you have an upcoming GBP or NZD currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The current levels may not be around for long as the currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.
If you 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 Matt. Alternatively, I can be emailed directly on [email protected]