The NZD has struggled to make any significant impact against Sterling in recent months, with GBP/NZD levels holding firm above 1.90.
Sterling hit a high of 1.9344 overnight and despite the NZD finding some support around this level, there is no indication that it is likely to make a move back towards 1.90 over the coming days & weeks.
The NZD has been handicapped due to low investor confidence in the New Zealand economy at present, with any positive moves being diluted by the Reserve Bank of New Zealand’s (RBNZ) reluctance to raise interest rates at present.
New Zealand’s economic growth has slowed in recent months, with a change of government and internal policies seemingly sapping investor confidence further. The NZD has remained marooned above 1.90 against Sterling for the majority of 2018 and whilst it is likely to find some protection below 2, I wouldn’t be gambling on sustained upturn under current market conditions.
Whilst there are still longer-term concerns surrounding Brexit, talks have advanced and the Pound seems to have gained a foothold across the board, which is also likely to hinder any major recovery for the NZD in the short-term.
This negative market feeling has also been accentuated by President’s Trumps proposed trade tariffs and current internalisation, which has the potential to have devastating effects on the global markets. These will potentially slow global trade, which in turn is likely to hurt commodity based economies such as New Zealand’s, which relies heavily on its export industry to thrive.
Due to these potentially negative variables, I would be looking to protect any short-term NZD sell positons. For any clients with greater adversity than myself, I would at the very least consider a bottom line and if NZD levels were to improve, take advantage of any short-term opportunities.
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 winning 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.