The GBPNZD exchange rate has really struggled in recent weeks as we await further information on the improvements for clients looking to buy New Zealand dollars. The overall impression from the market is that the pound could now really soar higher which would present some better opportunities for clients looking to buy the New Zealand dollar. Most clients expect that the pound will ultimately come under some pressure in the coming weeks as we get closer to the Article 50 being triggered and news on just what the UK’s Brexit deal is likely to look like.
If you are buying the New Zealand dollar with the pound there are many factors weighing on the market which could see the exchange rate slide further. I feel a move towards 1.80 is less likely than a move to 1.60 and clients looking to buy the New Zealand dollar should be looking more carefully at the current market and trying to make some plans around rates getting worse, not better.
Whilst there is a strong likelihood the pound will rise once Article 50 is triggered we could actually find that it also slides. The general impression had previously been the pound would struggle but markets are being much more supportive of the pound now we have some firm details over just what Article 50 will mean.
Personally, I would be surprised to see the pound rise as I feel there is just so much uncertainty over the Brexit that the rates will undoubtedly fall again. I think if you are buying Kiwis with pounds getting something done sooner than later is the best way forward. For more information at no cost or obligation please speak to me Jonathan Watson by emailing firstname.lastname@example.org