Sterling has managed to regain some ground against the NZD this week, recovering almost 3 cents from the lows of last week.
GBP/NZD rates touched a high of 1.9662 earlier and whilst the NZD is likely to find plenty of support under 2, this week’s recovery will be welcomed by those clients holding Sterling.
It’s been well documented that the Pound has been under pressure of late. Investors quickly sold off their GBP currency position, when it became clear that the Bank of England (BoE) would not be raising interest rates at their recent policy meeting.
I do believe that the BoE and Mark Carney in particular have lost a lot of credibility and this could have an impact on Sterling’s value moving forward, which in turn could help support any increase in value for the NZD.
Looking at the New Zealand economy and despite new Reserve Bank of New Zealand (RBNZ) governor Adrian Orr suggesting the New Zealand economy is in a “sweet spot”, there has been no suggestion that the central bank will be looking to raise interest rates any time soon.
There is also on-going market concerns that President Trumps’ antics and withdrawal from the nuclear deal, alongside his threats over trade tariffs are actually causing the global markets to weaken. This in turn could put pressure on the NZD, as investors shy away from the riskier based, generally commodity reliant currencies and back into the safer haven such as the USD or CHF.
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.