Brexit – A key factor on GBP/NZD levels
The very short exit plan from Theresa May has now been handed to the House of Lords following the plan being passed by the House of Commons. I would not expect any significant resistance, but it is important to note that if there is any amendments it could delay the triggering of Article 50 and this will cause the Pound to suffer.
There are three key topics that I would expect to be brought up:
- Regular updates on trade negotiations. (once every three months)
- Parliament having a vote on the final exit bill.
- EU citizens residing in the UK to have their rights protected following Brexit.
The bill will be up for debate in the House of Lords on 20th February when Parliament reconvenes from recess. If amendments are made by the House of Lords the bill will be passed back to the House of Commons for approval, this could see a ping-pong situation between the two houses which would definitely be the cause of a delay in the invocation of Article 50.
New Zealand Dairy Index
Keep a close eye on dairy prices, Dairy is New Zealands main export and any significant changes in this sector will have bearing on GBP/NZD.
When to move, New Zealand Dollar Buyers
If you need to buy New Zealand Dollars short term you are in a very difficult position as I expect high volatility on the pair. It would very unwise to trade during this period without the aid of an experienced broker.
Medium – Long Term
If you have a medium to long term time scale. I would utilise a Limit order, pick a realistic target rate and your currency will be purchased if your target rate becomes available. If the rate seems unobtainable you can cancel or amend the order to match new market conditions.
New Zealand Dollar Sellers
Sell now, you are at some of most favourable levels in over a decade, don’t be greedy hanging on for small gains.
If you would like my assistance please do not hesitate to get in touch. I am confident I can offer a better exchange rate than your current provider and I will also assist in timing your trade. Please do get in touch by e-mailing me at [email protected]. Thank you for reading.