The Pound has lost a substantial amount of value today against the New Zealand Dollar, as the likelihood of an interest rate hike in the short term future is looking unlikely.
All 9 voting members of the Bank of England voted in favour of keeping the base rate of the Bank of England on hold, dampening hopes a rate hike in the short term future after some impressive economic data figures out of the UK had raised hopes.
There was also a increase in demand of riskier currencies which benefited the New Zealand Dollar along with AUD as well as the Canadian Dollar.
Moving forward the Pounds value is likely to continue to be driven by sentiment. In such volatile trading conditions there can be big swings within exchange rates on a daily basis which is why I think setting up limit orders can be a good idea as clients may be surprised by short term movements, and they could end up trading at higher levels than they were expecting.
Late on Wednesday evening UK MP’s voted overwhelmingly in favour of the European Union Bill, which is likely to be one of the reasons for the Pounds decline in value today, as the reality of the Brexit draws closer.
If you are planning to make a currency exchange involving the Pound and the New Zealand Dollar, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.