NZD Suffers due to drop in Dairy Production (Daniel Johnson)

Dairy Production hits NZD

The New Zealand Dollar has suffered of late. New Zealand’s primary export is dairy and so any fluctuation in dairy prices and dairy production can have an impact on the New Zealand Dollar. We have recently witnessed a rise in dairy prices due to a contraction in supply. Fonterra is New Zealand’s largest dairy producer and their production forecast was cut severely due to adverse weather.

If you have a currency requirement involving the New Zealand Dollar it would be wise to keep an eye on Dairy prices should you wish to maximise the return on your trade.

GBP/NZD

Sterling is currently sitting at some of the highest levels of the year, 1.93. We have witnessed a rally due to several factors. Lord Jim O’Neill gave a very positive forecast for the UK economy, suggesting the UK will recover from Brexit in a quick fashion and that the backbone of the UK economy remains strong.

Dutch and Spanish finance ministers also came out publically and said they want a close trade relationship with Britain. German Chancellor, Angela Merkel also made similar comments which indicates a softer Brexit and the pound made significant gains as a result.

If you are buying NZD with Sterling be wary of thinking gains will continue. Phase 2 of Brexit talks are due to commence shortly and with Davis and Barnier at loggerheads the pound could take some damage. Trade talks will no doubt prove problematic.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at [email protected].