GBP NZD Breaks 1.90 ahead of Reserve Bank of New Zealand Rate Decision

GBP EUR Exchange Rate: Weekly Review July 16  

The New Zealand dollar has remained under considerable pressure in recent weeks following the New Zealand election. The New Zealand Prime Minister Jacinda Ardern has recently said that she is not concerned about the weakness in the dollar and should actually be welcome news for New Zealand exporters.

Rates for GBP NZD broke over 1.90 this morning creating an excellent opportunity for buying New Zealand dollars.

The Reserve Bank of New Zealand (RBNZ) will be meeting tomorrow evening to discuss interest rates. Expectation is for rates to remain on hold at 1.75% although any clues as to future direction at the press conference could see considerable volatility for the dollar. Both Australia and New Zealand were less aggressive in the levels of Quantitative Easing they chose to implement when compared with other central banks around the world and it appears the RBNZ are in no hurry to raise interest rates.

This view is keeping pressure on the kiwi dollar and this is unlikely to change in the coming months. Those clients looking to buy New Zealand dollars with pounds could see a move higher to 2 dollars in the months to come especially considering that the Bank of England raised interest rates last week to 0.5%. Although the pound saw a considerable drop immediately following the rate increase the pound has remained supported since and this is helping drive GBP NZD higher.

Those clients looking to move from Euros into New Zealand dollars and vice versa should pay very close attention to what happens in Catalonia in the next two months. Regional elections in December are likely to create considerable market volatility especially if Carles Pudigemont is able to run in the election campaign. EUR NZD could see some interesting market movements depending on how things turn out.

If you would like further information on New Zealand dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]