Market Uncertainty Following New Zealand General Election Results (Matthew Vassallo)

As The markets continue to digest the results of the New Zealand general election over the weekend, the Pound continues to find support against the NZD. The result ended in a stalemate as neither the current Conservative government, led by Prime Minister Bill English, or Jacinda Ardern’s led Labour party gained the required seats for a majority. This result echoed those in Germany, where Chancellor Angela Merkel also failed in her bid for a majority vote and, following a similar scenario in the UK, the political...

Will GBPNZD fall below 1.70?

The rates to buy Kiwis with pounds has plummeted in the last few weeks as fears and worries over the UK Brexit and impact on the UK weighs on the pound. The outlook for the UK remains poor since we know very little about just what is around the corner for the UK politically and this political uncertainty will very likely weigh on the UK economically. We are also concerned about the figures for the New Zealand economy but nowhere near as much as...

Sterling falls despite interest rate hike, where to next for the GBPNZD pair? (Joseph...

Sterling exchange rates fell in the immediate aftermath of the Bank of England's decision to hike interest rates yesterday afternoon. It appears that the markets had priced in the move from the BoE as the likelihood of it happening sat at over 90% before the move was made official. I think a combination of profit taking after the Pound had gained in the lead up to the decision along with some disappointment after the BoE suggested just another two additional hikes are likely to take place...

Are there further falls on the cards for Sterling? (Daniel Johnson)

GBP/NZD Forecast although the FTSE 100 continues to gain strength despite the vote to leave the EU, Sterling is having a torrid time against all major currencies and the New Zealand Dollar is no different.  Since Francois Hollande and Jean Paul Junker have stated trade negotiations will not take place until Article 50 has been triggered the pound has suffered. Their stance has all but forced the UK in to a hard Brexit. Trade negotiations are going to be difficult and drawn out creating uncertainty for...
Light at the End of the COVID-19 Tunnel Aids the Pound

Sterling slides with automated trading programs getting the blame (Joseph Wright)

Sterling fell quite heavily against almost all major currency pairs yesterday, and without any major economic news released to justifiably trigger such a drop. Analysts have mainly been blaming automated trading programs for the drop, and it's not the first time we've seen them hit the headlines as they have previously hit the headlines for creating a downward spiral within currency pairs. The way in which this happens is the new lows continue to trigger what are known as short positions which are essential financial...

Will Sterling Rally Significantly against the New Zealand Dollar? (Daniel Johnson)

UK data following the British public's vote to leave the EU has been coming in against the grain.  Many economists had stated the pound would continue to fall following Brexit but it seems the British are keeping calm and carrying on. UK retail figures were very impressive last month and proved to be a catalyst for a Sterling rally against the majority of major currency pairings. Retail data was predicted to be negative today but did come in slightly above the expected level and...
New Zealand Dollar: NZD Falls on Declaration of Pandemic and Europe Travel Ban

New Zealand Dollar Strength as Trade War Cools

The New Zealand dollar has been boosted after a cooling off in tensions between the US and China over trade. US Treasury Secretary Steven Mnuchin has stated that the US / China trade battle is now on hold which has been received well in the global context. The New Zealand dollar is heavily impacted by these kind of developments owing to its standing as a commodity currency. In time of global uncertainty the commodity currencies which includes the kiwi dollar are seen as higher...

Lending Limits introduced by the RBNZ and the impact on buying New Zealand Dollars...

The Reserve Bank of New Zealand has recently suggested that they will be introducing lending limits in an attempt to cool the over inflated housing market in the country. The central bank has already suggested that an interest rate cut is very likely when they next meet on 10th August. Typically if interest rates are cut this helps the property market as it means loans become cheaper and therefore creates more demand for property purchases and this increases house prices. However, this attempt to limit the lending...
New Zealand Dollar Outlook: NZD Rises Following Support Package From RBNZ

Important news to drive NZD exchange rates!

The New Zealand dollar is now at risk of losing ground further in the future as investors gear up for the US Federal Reserve to tighten further monetary policy in the future. With interest rates having been risen now to 2% in the US, the US dollar should continue to be a favourable currency for investors to hold. This will leave the NZD in the shade as investors will now get a greater return holding US dollars, rather than New Zealand dollars. The general perception...
Light at the End of the COVID-19 Tunnel Aids the Pound

UK Budget to impact GBPNZD exchange rates (Dayle Littlejohn)

At 12.30pm today Chancellor Philip Hammond will give his first budget and many economists are predicting this speech could be upbeat. The Chancellor is set to report that the UK economy has performed relatively well since the UK public decided to vote out of the EU on June 23rd. Furthermore the forecast for GDP could also be revised in an upward direction, similar to the Organisation for Economic Cooperation and Development report yesterday when they increased their GDP forecast to 1.6% an increase of 0.6%. If...