The Reserve Bank of New Zealand will tomorrow reveal their latest interest rate, which will also be followed by a statement. There is not expected to be a change to the interest rate which currently resides at 1.75%. If the Bank was to cut the rate to boost inflation then the NZD would suffer as a consequence, on the flip side however a hike would create major strength.
Sterling had started to make significant gains against the New Zealand Dollar over the past 3 months through April and May, however since the run-up to the subsequent hung Parliament in the UK general election the 6 month high has been relinquished.
Moving forwards I still think the NZD is overvalued and that the current strength could be lost if there was a significant event. If the UK being to make headway in the current Brexit negotiations and there was to be talk of a trade deal then a rise above 1.80 would be very plausible. It is however more likely that the current Sterling weakness will continue whilst Brexit talks take place keeping the GBP/NZD range bound in the 1.70’s.
If you’re looking to complete a transfer with New Zealand Dollars in the short or long term future I would be happy to discuss options with you. Considering the amount of scope for change the rate today could be completely different tomorrow. Foreign Currency Direct is a currency transfer specialist with tools and forecast to help you make the most informed decisions when you come to complete currency transfers. If you do have any questions please contact Ben Fletcher at firstname.lastname@example.org or call me on 01494 725353.