The pound and the New Zealand dollar has risen in the last 24 hours, they are both actually some of the best performing currencies in this period. This is largely down to the shifts in sentiment we have seen both the trade wars and also Brexit.
Will the US / China trade war end soon?
Regarding the trade wars we have seen sentiment improving as investors expect that there could be a deal struck between China and the US. US President Donald Trump did tweet that a deal could be reached very soon which would ease the negativity that has been hanging over global trade, and weighed on Chinese economic performance.
As a major trading partner of China and Australia, the New Zealand dollar weakened on concerns that these trade wars were negatively impacting China’s economic performance. The Kiwi dollar is therefore much stronger due to the expectations that these trade wars will soon not be as much of an issue.
Reports of Brexit deal progress
Expectations for a deal to be reached on Brexit have also increased with the Times newspaper reporting that progress has been made on a deal. Clients with a requirements to buy or sell New Zealand dollars could now find themselves in an interesting position, where both currencies have something more positive to drive them.
This could well provide some much better opportunities for both buyers and sellers, Brexit and trade war concerns are major events for the market and are likely to continue having a profound impact on the pairing.
Brexit optimism has increased today but we are still a long way from getting to a final point on the arrangements, any spike could well be short-lived. Whilst the Trade War issue too may unravel, I think the pound will be most likely to quickly find itself in difficulties again.
If you have a GBPNZD exchange to carry out, I would be most interested to hear from you and discuss the latest news to drive your price. Feel free to use the form below and request further information, I’ll be happy to get in touch personally.