Sterling has come under pressure during Wednesday’s trading, with the NZD gaining over two cents.
GBP/NZD rates have plummeted to 1.9065 this afternoon, having hit a high of 1.9278 overnight.
The Pound has come under pressure following a report that the first EU Brexit draft released UK government, has not been received well by the EU or their chief negotiator Michel Barnier.
The Irish border issue remains one of the key sticking points and the reality is that until this is agreed, there will be no transitional period and no soft Brexit.
This has caused investors to panic and pull their funds away from Sterling, which has once again taken two steps back, having been well supported over the past week.
Today’s move is a continuation of recent trends, with the Pound seemingly hitting a brick wall once again. Investor confidence in the UK economy and ultimately the Pound is being driven by sentiments around Brexit and the current hiatus and continuous uncertainty, is handicapping any major advances for the Pound.
Despite today’s drop in value Sterling has actually performed better against the NZD and other commodity based currencies, than it has against either the EUR or USD.
The NZD has struggled to make much impression of late, despite a upturn in their economic output and growth forecast, following a rocky period after their recent general election and change in government.
One of the reasons for this is the on-going uncertainty in the global markets. As the global markets improve investors risk appetite increases with it. This in turn will cause investors to move their funds in to what are considered riskier currencies such as the NZD. Therefore in times of global prosperity the NZD will often strengthen, as investors look for potentially higher yielding currency returns. Similarly in times of global uncertainty, as we currently face, funds are moved away from the riskier assets and into safer haven currencies such as the USD, thus causing currencies like the NZD to weaken.
If you have an upcoming NZD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.