GBPNZD rates rise but for how long?

GBP EUR Exchange Rate: Weekly Review July 16  

Most expectations on the GBPNZD rate centre on the worries over the next interest rate cut or lack of it in New Zealand. Market participants are also keenly watching the latest developments with Brexit with concerns over just how the rate will play out. Many investors are now awaiting further developments which might see the GBPNZD rate reach 1.80, not so long ago we were below 1.70, not good news for anyone buying NZD.

The New Zealand economy depends on global factors and with Donald Trump’s election we did see some interesting developments on GBPEUR that saw us wobble on financial markets unsettling the Kiwi. Thankfully Trump has been much better received and it is now almost a business as usual approach as we get closer to the next important economic event for the Kiwi, the US Interest rate decision.

This is due in the middle of December and should see some big swings on US dollar rates which will have an impact on GBPNZD rates. More than likely we will see the pound rising against the Kiwi if the US raise interest rates as this will see increases in the value of the US dollar which will weaken

If you have a transfer involving the pound or Kiwi then we are here to help with the planning and execution of any deals. We are able to offer significantly better rates than the banks and can ensure everything goes smoothly. For more information at no cost or obligation please email me Jonathan on [email protected]