The Pound remains relatively strong against the New Zealand Dollar after hitting pre-Brexit levels during April.
The first estimate of UK GDP for the first quarter of 2018 was published late last week and this showed that the UK grew at its slowest pace since 2012 at just 0.1%.
The Pound dropped against a number of different currencies but has continued to trade at these recent high levels against the New Zealand Dollar which highlights the problems facing the economy in New Zealand at the moment.
With the US economy looking to continue on their path of raising interest rates during this year and with the 10 year bond yield offering a return of 3%, it appears as if the riskier commodity based currencies including the New Zealand Dollar are struggling.
If you put yourself in the mind of a global investor the question is why would you be holding money in New Zealand Dollars when you can guarantee a 3% return in the world’s leading economy?
The Bank of England have also hinted that a rate hike may be coming this year and with the next meeting due next week if we see a rate hike or at least one coming this could see the Pound make even further gains potentially sending GBPNZD exchange rates towards 2. Therefore, if you’re in the process of buying New Zealand Dollars it would be worth your while keeping a close eye on the data release.
Having worked in the industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your currency transfer.
To find out further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]