Will GBPNZD reach 2? Inflation data this week key…

The pound to New Zealand dollar exchange rates has come very close to hitting 1 GBP to 2 NZD hitting 1.98 on the interbank rate before Christmas. In 2018 we have 1.96 as the highest point but with rates very close to breaking the 2018 highs, will we see 1 GBP buying 2 New Zealand dollars anytime soon? Let us look at some of the factors which will shape GBPNZD exchange rates and try to gauge and assess the likelihood of this happening in the weeks and months ahead.

The pound has been rising lately as the UK’s position on interest rates becomes more positive and the outlook over the Brexit also turns more positive. Clients looking to buy or sell the pound for the New Zealand dollar could be in for a turbulent week as the market learns of the latest UK data on Inflation and Unemployment which will influence the Bank of England. The next OCR (Official Cash Rate) announcement from the RBNZ (Reserve Bank of New Zealand) decision is in May but there are plenty of other events to move the market, namely Inflation.

The main event on New Zealand data front is Inflation data which is released on Wednesday evening, Inflation is running around 0.5% at the moment which gives very little reasons for the RBNZ to be considering any interest rate hikes. Therefore a weaker Kiwi could be on the cards towards the middle or end of the week. If you are looking to buy Kiwis at 2 then why not let me know via email and I can offer some information on tools we can use to capitalise on the spike.

A big driver on the New Zealand dollar is economic performance and news in Australia and China, New Zealand’s biggest trading partners. Overnight Chinese GDP (Gross Domestic Product) data was mixed but slightly down, GBPNZD is higher on the back of this slightly worse news for China.

If you have a transfer buying or selling New Zealand dollars then this is going to be a very busy week and GBPNZD at 2 seems a real possibility, for more information please email me [email protected].

Thank you for getting in touch and I look forward to hearing from you.