One of Sterling’s only positive pairings at the moment is the GBP/NZD. Due to the uncertainty in the US it appears investors have removed their funds from the riskier NZD and put them in safer currencies such as the US Dollar. The reason that is safer despite the North Korea uncertainty is their are so many factors effecting the currency one issue tends not to influence the value, saying that all out war will change things.
From a data perspective there is very little out for the New Zealand Dollar with Manufacturing Sales for quarter 2 being released on Thursday. This is likely to mean little movement over the next few days, however there could be an influence from the Korean Peninsula if things escalate further.
Where to Next for GBP/NZD?
One thing I would argue now is that the GBP/NZD is unlikely to return into the low to mid 1.70’s. Therefore Kiwi sellers should consider transferring their funds before any further ground is lost. Sterling appears to have reached a bottom and now looks to be picking back up. Considering the currency reached record low making up some of the lost ground seems a plausible assessment. Acting sooner rather than later as a NZD seller could make sure you are still capitalising on the bets rates, anyone looking to purchase NZD should be looking for the 1,85 region and taking advantage on that rate if it comes.
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 favour, please contact me at [email protected]