Past history tells us that when a country holds a General election, the currency tends to weaken. Last months hung parliament decision has sprung no surprises in regards to exchange rates and the New Zealand dollar has devalued across the board and against sterling with GBPNZD exchange rates reaching a 5 month high.
It appears that Winston Peters, leader of the New Zealand first party holds the power, as he will choose whether to form a coalition with the National party or the Labour party. For the New Zealand dollar to recover some of the losses I would expect a coalition with the labour party should help and Peters has set a deadline of Thursday to make a decision.
If a coalition is formed I expect the New Zealand dollar to recover by a cent or two against the pound. Couple this with the uncertainty Brexit continues to bring buying New Zealand dollars with pounds earlier in the week may pay to your advantage.
Data releases are thin for the New Zealand dollar this week. The only data release to keep your eyes on is the Business NZ PMI later Thursday night. This release asses business conditions in New Zealand and has the potential to impact exchange rates.
If you are buying or selling New Zealand dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (NZDUSD, NZDGBP, NZDAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected].
Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **