It’s been almost a month since the Pound to New Zealand Dollar exchange rate was last seen trading over the 1.80 mark, and almost 2-months since the rate was almost as high as 1.90.
The disappointing election outcome for Theresa May’s Conservative Party triggered the recent fall in the Pounds value and the increasing rate of inflation, coupled with the unlikelihood of an interest rate hike this year is adding to the Pound woes.
We’ve been receiving mixed messages from the Bank of England as to whether there will be a rate hike this year, and I do think that if there are expectations of a rate hike we could see the Pound to NZD rate rise back above 1.80.
In the meantime I personally expect the issues of wage growth not keeping up with the rate of inflation to continue to be an issue for the Pounds sentiment, as once consumer spending slows even further I think the UK economy could take a knock as so far it’s that part of the economy that has remained resilient.
Tomorrow at 2pm there will be the release the NIESR (a popular think tank) UK GDP figure for last month. The expectation is for 0.2% so expect any deviations from this figure to result in GBP/NZD movement.
If you have a 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 (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.