GBP NZD ahead of Supreme Court Ruling (James Lovick)

GBP NZD exchange rates have seen a positive day with gains of around 0.3% for this pair taking rates up to 1.73. Tomorrow sees the UK Supreme Court ruling on whether the British government must consult parliament before invoking Article 50 to commence the withdrawal from the European Union. This has been eagerly awaited and there is a huge amount riding on this important decision.

The pound is likely to see considerable volatility on the back of the news and new direction should be seen. Those clients either buying New Zealand dollars or selling New Zealand dollars would be wise to get in touch as the next few weeks are going to be immensely uncertain as Brexit approaches rapidly, with a raft of political outcomes.

The New Zealand dollar is also facing pressures from the new Trump administration. There are concerns over future trade between the US and New Zealand and this is likely to be major driver for the new Zealand dollar. The protectionist speech at the Presidents inauguration has raised eyebrows in countries which could see trade fall. 

UK Public sector borrowing numbers are released tomorrow although the focus will be almost solely on the Supreme Court ruling.  The verdict will be given at 09:30 tomorrow morning and an immediate market reaction is likely. If Theresa May loses the appeal this is likely to create added uncertainty for the pound as some clear direction has recently been offered following Theresa May’s Brexit statement last week. If Parliament are able to delay or weaken the government’s position then the pound is likely to become hugely volatile once again.

If you would like further information on New Zealand dollar exchange rates and to discuss how we can assist 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]