The pound is continuing to rally against the New Zealand dollar as confidence gradually returns to the British economy and sterling exchange rates. GBP NZD is sitting at 1.79 this morning and the trend is upwards with 1.80 for this pair within sight.
The pound is likely to be in for a very volatile week however with the Supreme Court case which commenced yesterday which will determining whether the British government must consult Parliament before invoking Article 50, the formal mechanism which Britain must undertake to withdraw from the European Union.
The case is being shown live and is naturally generating a huge amount of public interest. Although a verdict is not expected until early January 2017 it will inevitably be highly featured in the press and there could be some volatility on the back of any developments. The case is so important for the UK and hence the pound because the outcome will effectively direct the course of Brexit.
This evening sees manufacturing numbers and building permits released in New Zealand which should give us some clues as to where the New Zealand economy is heading.
The New Zealand dollar is likely to come under further pressure as the US Federal Reserve meeting approaches. Any interest rate increase in the US at the December meeting is likely to see funds pulled back out of the kiwi dollar and into the US dollar where interest rates will soon be higher. There could be some better buying opportunities for buying New Zealand dollars after the December meeting by the US Fed.
Clients who are holding sterling are seeing a very volatile period at the moment which is unlikely to change any time soon.
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 James. Alternatively, I can be emailed directly on [email protected]