GBPNZD rates have fallen on GBP weakness as the pound struggles to keep its head above water. Market sentiment for the pound is very much skewed to the downside which is presenting struggles for the pound and this is being witnessed to a large extent on the GBPNZD rate.
Just looking at the Kiwi itself it is not surprising why this currency is performing well. With a buoyant housing market and high interest rates the Kiwi has gone from strength to strength as investors wait and watch and keep increasing their funds in the Kiwi.
With a much higher interest rate than the UK the Kiwi represents a much better return on your investment, many investors holding the pound have really backed away in recent weeks as we learn of the UK’s approach for the ‘hard’ Brexit which has really worried financial markets.
Tomorrow morning is New Zealand Trade Balance figures and total Exports and Imports which could be of significance but I feel the market will remain very much focused on the UK and what is happening for the future in the UK.
If I had to stick my neck out I would suggest that the GBPNZD rate could fall into the mid 1.60’s for clients looking to buy or sell this could present some problems. If you have a transfer you are looking to undertake getting something planned in advance is a wise move! For more information on the forecast and being kept up to date please speak to me Jonathan by emailing [email protected]