Once again it is global events creating movement on the GBPNZD exchange rate. After what has essentially been quite a quiet week for the markets investors and market analysts are all looking very closely to the pending Jackson Hole Symposium which is due tomorrow to Friday. Anticipation is high that the central bankers gathered will be looking to discuss how their respective economies are normalising.
This analysis really only applies to the US and the Eurozone since the UK is still very much on life support having cut interest rates last year following the Brexit vote. Up ahead we now have the twists and turns of Brexit but with the rest of the world getting on with business, the UK and the pound are being caught up in a nasty vortex of political and economic uncertainty.
Having said that the predicted confidence emanating from the US has weakened the NZD as investors try to position themselves for some positive comments from the central bankers. The New Zealand dollar will weaken when there is expectation of more higher and safe haven currencies performing well. Investors will hold in their portfolio varying amounts of risky and no-risky currencies.
The New Zealand dollar is termed a risky currency and as such will not generally perform well when other currencies perform better. This has led to a short movement on the Kiwi with back up over 1.77 versus the New Zealand dollar.
If you have a transfer to make buying the Kiwi the weekend’s news from the Jackson Hole Symposium could really move the market. If you need to transfer any funds and wish for a higher level then I would be targeting a Limit order which will guarantee your price over the weekend. You let me know a higher level and we can put in the order at the higher level and buy automatically once the level is hit.
Thank you for reading and I look forward to hearing from you in the future.