GBP NZD Breaks over 1.90 ahead of GDP Data

New Zealand Gross Domestic Product (GDP) numbers are released tomorrow evening and are expected to see a jump higher to 3.1%. A positive number could help lift the kiwi dollar creating some better opportunities for those clients looking to sell New Zealand dollars. The Reserve Bank of New Zealand (RBNZ) meet next Wednesday and will announce its latest interest rate decision.

The RBNZ meeting will be hugely important for the future of the kiwi dollar especially considering developments in the US and how many times the US Fed are likely to raise interest rates this year. The New Zealand dollar is also heavily impacted by interest rate policy in the US. GBP NZD has broken back of 1.90 for the paid creating a nother goo opportunity to buy New Zealand dolalrs.

Clients looking to buy New Zealand dollars with pounds are likely to see a volatile couple of weeks on the back of developments in the Brexit negotiations. The UK / EU transitional agreement in the second stage of Brexit negotiations is expected to be finalised ahead of the EU summit in Brussels 22nd/23rd of March. If the EU commission are happy to agree then the talks will be able to move on to the more thorny issue of future trade and most importantly whether or not financial services can be included in any final deal.

Any positive commentary from Brexit is likely to help see the pound rally in my view although until real clarity of the future trading relationship is established then any gains for GBP NZD are likely to be limited. As far as sterling exchange rates are concerned the ongoing Brexit continue to be the single biggest driver for sterling exchange rates. When the final round of talks which commence later this month are well underway there is a good chance in my view that the pound will begin to strengthen although we may be waiting a couple of months to see such movement

For more information about the New Zealand dollar and for assistance in trying to achieve the best exchange rates then please feel free to email me at [email protected]