The pound has rallied against the New Zealand Dollar following news from the US. Trump failed to replace Obama’s Affordable Health Care act and investor’s lost faith in the republican party’s ability to push through legalisation.
This was welcome news for Sterling considering the falls we have witnessed for Sterling against the New Zealand Dollar of late. Political and economic uncertainty have weighed down heavily on the pound. The threat to Teresa May’s position does nothing to help the situation and Brexit negotiations currently look very problematic. In my opinion they will have to ease us into a soft brexit in order to not cause public outrage. It is vital for a firm stance to be taken on the UK’s Brexit agenda, not knowing anything will keep the pound weak.
Once the stance is revealed and a deal starts to become more apparent I think GBP/NZD has the potential to break 1.80, which is currently a resistance point.
UK Inflation data is due out tomorrow and this has potential to cause volatility on GBP/NZD. Inflation is currently at 2.9% some way below average wage growth at 1.8%. If the gap widens consumers may be more reluctant to part with their hard earned money and then there is potential for a recession.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Daniel Johnson) on [email protected] and I will endeavor to get back to you as soon as I can.