Buying New Zealand Dollars – Resistance at 1.75 (James Lovick)

The pound has made gains against the New Zealand dollar over the last week with rates breaking through 1.75 in the early of hours of this morning. GBP NZD has received a boost despite ongoing concerns over Brexit in the UK.

Manufacturing sales from New Zealand are released tomorrow evening and a strong number could help boost the New Zealand dollar. However it is the trade data from China that should be keenly watched on Wednesday morning.

The New Zealand dollar is a commodity currency with a large export led economy consisting of raw materials of which China is a sizeable importer. Any strong numbers from China could see the New Zealand dollar boosted. Those clients looking to buy New Zealand dollars may wish to take advantage of the higher rates which have become available.

UK data has proved resilient and the recent Purchasing Managers Index surveys for the manufacturing, construction and services sectors all showed expansion in the relevant sectors. In some cases the data has not been quite as strong as expected but nonetheless they are a solid set of numbers which puts the UK in a good position economically.

Brexit continues to be a major driving force for the pound and as things develop in the House of Lords this week there is likely to be considerable volatility that comes out of this. The pound in my view is likely to see a jump higher if no amendments are made which will allow Theresa May to invoke Article 50 and commence Brexit.

If you would like further information on sterling or Euro 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]