The GBP/NZD rate moved into the 1.80’s for the first time in 2 months, providing a rare opportunity for Kiwi buyers. The main reason for the sudden jump is the uncertainty surrounding the potential conflict between the US and North Korea. Investors who have funds in the riskier NZD have started to lose their risk appetite as global concerns come to the forefront. This essentially means investors will move their money to more secure currencies such as the US Dollar and the NZD will suffer.
This process could start to become more aggressive over the next few weeks as the two nations look like they’re coming close and closer to a conflict. I wouldn’t be surprised to see the GBP/NZD continue to move further north taking the rate nearer to the 1.85 level. Global events often control the NZD more than the nation itself and this is another example of that.
What this does therefore mean is New Zealand Dollar sellers should really start to act now, the record lows look like they have come to an end with the momentum now very much against the NZD. Foreign Currency Direct are able to help you execute a trade and make sure you’re trading at the right time should the market move in your favour. If you’re looking to transfer funds to the UK then getting in touch could make sure you’re in a position to achieve what you want.
If you do have a question with regards to my forecast please get in touch. When you come to moving large sums of money a movement of a cent can often relate to a significant difference in your returns. Helping you formulate a strategy could make sure you’re in the best position to exchange currency when the market is in your favor, please contact me at [email protected]