Pound to New Zealand Dollar exchange rates have seen further concerning falls overnight, with the late release of a recent YouGov poll showing the Conservative lead over their Labour counterparts having narrowed to just 7%.
The knock-on effects for this are large. Whilst still projected to win, their ability to win a majority, according to an interesting article in The Times this morning becomes questionable.
Furthermore, markets were only confident enough to bet on the Pound retaining stability when the gap between the two parties was more of a chasm than a short jump.
Particularly with the recent memory of the Referendum and the poll-defying results still vivid in the minds of most financial institutions and currency investors, 7% is not currently enough to entice serious demand for Sterling in my opinion. Without demand to prop up Sterling’s value, the continued rises which were painting a picture of 1.90 available in the not-too-distant future are disappearing fast.
The election will continue to be the dominant feature on currency markets, with GBP/NZD rates changing alongside the expected voting landscape. Elections are arguably the most uncertain period on a currency market calendar, and the knock on effects for the Pound’s value are large given the potential effects this election will have on the Brexit negotiations, and therefore UK economic policy and status for decades to come.
Anyone with a New Zealand Dollar requirement, whether buying or selling, in the immediate term may be wise to contact me to discuss a strategy on how to approach the vote to secure any targeted peaks and ensure you are better protected from any downside risk.
It could even be that the slight resurgence on exchange rates recorded today will be the best buying levels available before the election itself.
I have never had an issue securing more commercial exchange rates than what is on offer elsewhere. Contact me over the bank holiday weekend on [email protected] while markets are closed for a short discussion concerning your personal situation.