The New Zealand dollar has come under pressure following weaker than expected official trade balance figures. The data showed a surprise fall in the trade deficit for January taking it to the biggest deficit since 2007. The January trade deficit was -$566 million against an expected trade balance of zero which has come about after imports surged whilst exports fell.
It may be a one off occurrence and some commentators are suggesting that it will balance out over the course of the year. From here on the economic data will be particularly closely monitored and there is likely to be more market reaction on weaker economic data releases. Any signs of a slowdown could the New Zealand dollar weaken.
Rates for GBP NZD
Clients looking to buy New Zealand dollars should pay close attention to what happens following the eagerly awaited speech by the British Prime Minister on Friday. Theresa May is expected to set out the future path for Brexit and it is believed she will rule out being part of any customs union. This has the potential to be another landmark speech which could have a similar impact to the one she made at Lancaster House last year when she set our her vision for Brexit.
A strong and well received speech could see a boost for GBP NZD exchange rates although anything could in fact happen come Friday. Politics are very much the driving force behind sterling exchange rates at present and clients with a requirement to sell New Zealand dollars for pounds may see big shift In the rates in the coming days and weeks with so much happening around Brexit.
To discuss the New Zealand dollar and how these events may impact on your own transfer then please feel free to get in touch with me at [email protected]