At the back end of last week GBPNZD exchange rates reached support levels of 1.8990 and since have rebounded back above 1.90. Over the last 4 weeks GBPNZD has been range bound between 1.898 and 1.94. For clients that are converting pounds into euros quite simply I would trade when the central levels are in the higher 1.93s and if I were selling NZD to buy GBP I would trade if central levels dip into the 1.80s.
This seems like a very simple approach however my theory behind it is that Brexit sentiment appears to be changing on a weekly basis and I expect this to continue in the upcoming weeks and months. To summarise the ongoing negotiations, UK Prime Minister Theresa May wants a bespoke deal, but the Europeans are calling this cherry picking.
There will be up and downs in the weeks to come therefore I believe there will be opportunity for buyers and sellers, nevertheless if I had to put my neck on the line I believe we will see 1.95 before 1.85 as a deal will be struck in the upcoming weeks in regards to the transition, which will pave the way for trade talks to begin early April.
In other news the key economic data releases to look out for which will provide movement this week for GBPNZD exchange rates is Chinese Import, export and trade balance numbers Thursday morning, Chinese Consumer Price Index Friday morning, and UK Manufacturing and Industrial production numbers Friday morning.
If you are buying or selling New Zealand dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (NZDUSD, NZDGBP, NZDAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected].
Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **