The pound has seen a positive day against all of the major currencies including the New Zealand dollar. Rates for GBP NZD have increased by over 0.7% taking levels to just below 1.75 for this pair.
Tomorrow sees UK inflation numbers which are likely to result in some market reaction. Inflation has become extremely topical in recent months as a result of higher oil prices and also the weakness in the price of sterling as a direct result of Brexit which have both started to filter through into consumer prices.
Inflation is now starting to feed through and a high number tomorrow could see the pound rally further.
The New Zealand dollar is likely to be heavily impacted by events in the US which surround new policies from US President Donald Trump and also the new direction from the US Fed. Janet Yellen will be addressing congress tomorrow night and the markets are eagerly awaiting this speech to look for any clues as to how soon the next US interest rate may come.
This is relevant for the New Zealand dollar as changes in the US have a direct impact on the commodity currencies of which the New Zealand dollar is one of them. Any hike in interest rates in the US is likely to see funds pulled back from the New Zealand dollar and into the US dollar.
As such there could be some better times around the corner for those clients looking to buy New Zealand dollars. A good Brexit outcome for Britain could see 1.80 in a very short time frame if the exit negotiations get off to a good start.
If you would like further information on New Zealand dollar exchange rates or any of the major currencies 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]