If you are buying New Zealand Dollars with Sterling yesterday created a window of opportunity. It has been difficult for the pound to rally even when there have been positive data releases. Yesterday however there were three catalysts to the pounds rally against the kiwi. First there was the release o f positive UK services PMI, with services taking up a major part of UK GDP it was welcome news when the figures came in better than expected and we saw Sterling begin it’s ascent.
Next up was the high courts ruling that the government would have to vote on article 50 being invoked. This now means there is the possibility of a soft Brexit and again the pound benefited. Finally UK interest rates were left on hold and GBP/NZD moved as high as 1.7074.
If you are selling Sterling and buying New Zealand Dollars it may be wise to take advantage of current levels as the UK economy still has major problems ahead, particularly inflation.
Data Releases of Consequence Next Week
Keep an eye on New Zealand Electronic Card Retail Sales on Tuesday at 22.45 as these figures are more influential than some think and if data comes in away from expectations expect swings in value for the kiwi.
2100 on Thursday is The Reserve Bank of New Zealand’s Interest Rate Decision. I would be very surprised at any change. There is the monetary policy meeting afterwards however, which could give an indication to monetary policy going forward which could move markets.
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Executive Dealer – Foreign Currency Direct