EU Summit to dominate Sterling vs New Zealand Dollar exchange rates (Tom Holian)

We are now just one day away from the latest EU summit which will be discussing the key topics concerning the ongoing Brexit discussions.

After agreeing citizens’ rights and the Irish border issue last Friday the Pound hit its best level to buy New Zealand Dollars since June 2016 when the vote to leave the European Union happened. However, since then owing to the ongoing uncertainty this has caused the Pound to drop back against the New Zealand Dollar.

This morning the UK will announce the latest set of UK unemployment data due out at 930am. The figures are close to their best levels in 40 years but the real concern for the British economy is Average Earnings also released this morning.

Indeed, with inflation hitting over 3% yesterday and average earnings not keeping up this is a concern for the British economy and also for the Bank of England.

However, the key movements for the Pound vs the NZD will be what happens over the next few days at the EU summit. I think if the discussions remain positive then I think we could see GBPNZD exchange rates move in a positive direction but overall the uncertainty is likely to cause a huge amount of volatility for the currency pair so make sure you’re prepared for any unexpected movements.

Indeed, legislation is due to be brought in tomorrow concerning the banning of foreigners from buying existing homes. This is an attempt to stop offshore speculators from pushing up the price for first time buyers and although this could be socially a good thing it could cause problems for the economy as it will discourage as much foreign investment in New Zealand.

If you’re in the process of either buying or selling New Zealand Dollars and would like to be kept updated with what is happening over the next few days then contact me directly for a free quote.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you better exchange rates than using your own bank but also help you with the timing of your trade.

Contact me directly Tom Holian [email protected] and I look forward to hearing from you.