This week both central banks (Reserve Bank of New Zealand and the Bank of England) will release their latest interest rate decision and both have the potential to cause major fluctuation for NZDGBP exchange rates.
New Zealand inflation remains below the RBNZ target therefore the chances of a rate hike Wednesday morning are non existent. However with quarterly inflation rising slightly last month the RBNZ may show some optimism which could have a positive impact on New Zealand dollar exchange rates. However the likelihood is a non event.
The Bank of England’s interest rate decision should me more of a volatile event. UK economic data throughout April was poor, inflation, retail sales and GDP all took a tumble and before these releases it looked like an interest rate hike was inevitable this month. However many forecasters are suggesting the likelihood of a hike has dropped from 85% to 20%, and that is why the pound has had a torrid time in recent weeks.
I don’t believe the Bank of England will raise rates on Thursday therefore the pound could lose further value off the back of the decision. Nevertheless we could see the pound recover once the Governor of the Bank of England gives his speech as I wouldn’t be surprised to see him hint towards a hike next month.
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! **