The NZD has seen its levels improve against Sterling of late but is still struggling to make any impact under 1.90.
The Pound has found plenty of support around this key threshold, despite the on-going concerns surrounding the UK economy.
Brexit talks have come back into focus and the Bank of England’s (BoE) recent decision not to raise interest rates, has also sapped investor confidence in the Pound.
The Reserve Bank of New Zealand (RBNZ) on the other hand were fairly bullish, citing strong export figures and robust economy, which was expected to show continued growth over the coming years.
Despite this positive outlook, they did remain cautiously optimistic. Concerns over global trade could potential destabilise the New Zealand economy, which relies heavily on its exports, particularly dairy, in order to prosper.
Investors generally shy away from commodity based currencies such as the NZD in times of global economic uncertainty. Due to the NZD being more volatile than other currencies even in a more stable market, a cautious approach is required.
Looking at the UK and until Brexit negotiations have been resolved one way or another, it is unlikely that investor confidence will grow significantly, which is likely to handicap the Pound over the coming months.
Due to this on-going uncertainty, I would be very tempted to protect any GBP/NZD currency positions and remove any market risk where possible.
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 firstname.lastname@example.org to find out all the options available to you ahead of your currency transfer.