New Zealand dollar buying opportunity!

The New Zealand dollar has weakened ahead of the New Zealand dollar interest rate decision tomorrow. Market expectations are for the Kiwi to weaken as Governor Wheeler is expected to do some classic jawboning which will weaken the currency. The Kiwi is likely to be subject to Wheeler’s desires to see it weaker without actually changing interest rates. Whilst the Reserve Bank of New Zealand want a weaker currency they also want to be careful about a buoyant housing market. Cutting interest rates could serve to boost lending fueling the housing market and a potential bubble which would not, in the end, help the economy.

Market expectations for the GBPNZD rate are for it to push higher,  I would expect rates higher to 1.80 could not be ruled out. If you have a transfer involving buying New Zealand dollars in the coming days this spike could be well worth monitoring very closely as just around the corner we might then see Article 50 enacted which could easily send the pound much lower. Personally, I would not want to gamble on this event and so believe getting something done sooner than later is better. If you are looking to buy NZD with pounds and wish to get some information on the better exchange rates and trade above 1.80 please contact me Jonathan by emailing [email protected].

Expectations on the GBPNZD rate range between 1.65 and 1.82 for me. I think there is a big risk the pound suffers once Article 50 is triggered and we get news of the trouble ahead for negotiations. If you are selling New Zealand dollars to buy pounds and wish to be kept up to date with the market and all of your options please contact me to discuss in more detail.

Jonathan Watson

[email protected]