Will GBPNZD keep on rising?

Positive End to the Week for the Pound

The pound has risen against the New Zealand dollar which is presenting a much-improved position to buy New Zealand dollars. Market predictions are focusing on the outlook on the Brexit deal which is looking like it could see the pound stronger in the future.  Of course there are never any guarantees in these cases, overall the positive outlook for the pound which has helped lift GBPNZD could quickly come crashing down if there are any reasons to suspect the deal will suffer.

Overall impressions on the Kiwi are that the RBNZ (Reserve Bank of New Zealand) will struggle this year to progress with future rate hikes, the market seems to suspect raising interest rates is a possibility but with the economic conditions in New Zealand the way they are, raising rates could prove damaging. The RBNZ’s first meeting of 2018 is the 8th February, any clients looking to buy or sell Kiwis should be putting this in the diary.

Other factors to monitor are milk prices, which are the biggest export from New Zealand. Chinese economic data will also provide indicators for the New Zealand economy since China is one of the largest export markets for Kiwi goods and services.

2018 will be a key year for the pound and Brexit, we need to be very much aware of what is happening in the future in order to plan and monitor for the future. If you wish to be kept informed and updated on the GBPNZD trends why not make contact with us using the form or just emailing myself Jonathan Watson directly on jmw@currencies.co.uk

Thank you for reading and I look forward to hearing from you in the future.