The pound has suffered a sharp fall against the New Zealand dollar and nearly all of the major currencies following the interview that UK Prime Minister Theresa May gave to Sky News on Sunday.
The markets have been interpreting her comments and have come to the conclusion that a hard Brexit is a distinct and likely outcome which would probably see the UK coming out of the single market altogether.
GBP NZD has fallen by over 2.5% with rates now moving well away from that recent target of 1.80 to levels currently around 1.7250. The pound is losing ground across the board one again this morning and my view is that it should have further to fall in the short to medium term or at least until Britain has triggered Article 50.
The Supreme Court ruling on whether Britain must consult Parliament is to be announced imminently and may even arrive later this week. With a looming deadline of the end of March to when Britain will invoke Article 50 then my view is that the verdict will be offered at the earliest possible time.
GBP NZD will be impacted and depending on the outcome the exchange rate could move in either direction. If Theresa May wins the appeal which I would not rule out then the pound is likely to see a sharp fall very quickly.
For those clients looking to buy New Zealand dollars there is considerable risk that rates could move lower. There could be a win opportunity if the appeal goes against the Prime Minister so those looking to buy New Zealand dollars should be ready to act to maximise on a good potential spike.
If you would like further information on buying or selling New Zealand dollars and to discuss how we can assist then please feel free to contact me. I can be emailed directly on [email protected]