GBP/NZD Theresa May’s speech causes Sterling rally (Daniel Johnson)

Some confidence restored to investors following May’s speech

Theresa May spoke this week and gave some clarity as to Britain’s exit strategy to the EU. May made it clear the UK are heading for a hard brexit, many believed this would cause further Sterling falls against the New Zealand Dollar. In fact on this occasion news is better than no news. Investors gained confidence and Sterling gained strength.

We still have the supreme court ruling due to be released on 24th January on whether parliament will get to vote on the triggering of article 50 and this could well cause further volatility on GBP/NZD.

There are still many unanswered questions surrounding brexit and there is still a great deal of uncertainty about how it will go. The key factor is trade negotiations. Current targets seem border line ridiculous at two years. Sir Ivan Rogers the UK ambassador to the EU recently resigned stating there was insufficient planning for the EU exit and that trade negotiations could take up to ten years. This puts Sterling in a very vulnerable position, I would expect high volatility throughout the year.

CPI Data could cause movement on GBP/NZD

New Zealand Consumer Rice Index (CPI) is released on Wednesday evening by statistics of New Zealand and is a barometer of price movements by the comparison between the retail prices of a representative set of services and goods. CPI is a key measure of inflation and can cause movement on the exchange.

If you have a currency requirement I will be happy to assist. It is important to be in touch with an experienced broker to keep you up to date with what is happening in the markets.  I can provide an individual trading strategy to suit your needs and I am also prepared to provide a comparison against your current provider should you have one. I would expect to make you a saving of between 2-4% against your high street bank. Please do get in touch if you would like my free, no obligation assistance.

Daniel Johnson – [email protected]