Although the Pound has been struggling against the majority of major currency pairs in recent weeks, as uncertainty surrounding a number of issues in the UK is putting pressure on the Pound, the trend completely reversed for the GBP/NZD rate yesterday.
The reason behind this move is the uncertainty the new Prime Minister, Jacinda Ardern has caused as she is the youngest Prime Minister in New Zealand since 1856, and her party wasn’t the outright winner when the election took place around a month ago. She has obtained power through a coalition agreement, and the markets have viewed this move with caution.
The move between the Pound and Kiwi is particularly interesting as Sterling has come under increasing pressure of late, as speculation as to whether the interest rate hike will actually occur next month is building along with Brexit negotiations coming to the forefront of news headlines as talk of a ‘No Deal’ is heating up.
GBP/NZD rates are now almost back to their highest levels of 2017, as the only time the rate was higher was back in May.
Next week there will be a number of news releases that could move the Pounds value, such as GDP and Inflation data out of the UK on Wednesday.
If you would like to be kept updated regarding any short term price movements between the Pound and the New Zealand Dollar, do feel free to get in touch with me.
If you have a large 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.