Improvements for the Pound but are They Sustainable Under Current Market Conditions?

It’s been a positive day for Sterling, which has made gains against a host of the major currencies. GBP/EUR rates have moved back above 1.14, hitting a high of 1.1462 earlier today. GBP/USD rates have also spiked towards 1.34, although the greenback has manged to find plenty of support just under this threshold. There were also significant gains against the commodity-based currencies, with GBP/AUD, GBP/NZD & GBP/CAD rates all rising by more than a cent. The Pound received a boost yesterday following the release of better...

NZD Forecast – Where Next for the Kiwi Dollar?

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...
The Kiwi dollar and the pound rise on better news

New Zealand Dollar Riskier after Italian Election Uncertainty

The New Zealand dollar has come under a small amount of pressure after investors have shied away from the riskier currencies following the political uncertainty being seen in Italy at present and also as a result of a slide in oil prices after the recent strong rally. The Italian political uncertainty is likely to be a big driver for the coming days and possibly weeks for all of the major currencies including the New Zealand dollar. The kiwi is heavily impacted by this particular event...
Could the Pound hit 2 vs the New Zealand Dollar?

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...

NZD Forecast – Global Trade Fears Could Put Pressure on the NZD (Matthew Vassallo)

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...
Could the Pound hit 2 vs the New Zealand Dollar?

Dairy Price Rise Supports NZD (James Lovick)

The New Zealand dollar has been supported with a rise in dairy prices at the latest Global Dairy Trade auction which saw prices rally 1.1%. It was only two weeks ago when prices had fallen by 1.1%. The dairy industry will be hoping for a weaker New Zealand dollar which will help cash flows and help boost the economy. With interest rates in the US climbing higher whilst staying still in New Zealand there is every chance the New Zealand dollar may have further...

New Zealand dollar under severe pressure (Dayle Littlejohn)

The forecast for the strength of the New Zealand dollar is looking bleak according to the Reserve Bank of New Zealand's interest rate decision last week. The central bank stated that interest rates will remain at record lows until early 2020 as inflation continues to remain stagnant. Over the last few years investors have flocked to the New Zealand dollar due to the high returns on interest rates, however now that the US have hiked interest rates to 1.75% and plan to hike interest rates...
GBP/NZD - New Zealand Retails Sales Figures Likely to Boost Confidence in the NZD

NZD Forecast – NZD Weakens Following RBNZ Interest Rate Decision

The new Reserve Bank of New Zealand (RBNZ) governor Gordon Orr delivered his first speech as governor, following the central bank’s latest interest rate decision. As expected they kept rates on hold at 1.75%, with Orr warning that it was unlikely that the RBNZ would be looking at hiking rates any time soon. The NZD had made impressive inroads against Sterling but gave up almost 3 cents following last night’s monetary policy speech, with investors becoming concerned that the central bank may even look to cut...
Could the Pound hit 2 vs the New Zealand Dollar?

New Zealand Dollar falls after US pulls out of Iran Nuclear Deal

The New Zealand dollar has dropped after yesterday’s announcement from US President Donald Trump that the US is pulling out of the Iran nuclear deal. The commodity currencies including the New Zealand dollar are seeing an immediate reaction to the proposed sanctions on Tehran. Trump has stated that the international agreement which was also backed by the UK and France was a one sided deal that should never have been made. The fall in the commodity currencies is due to perceived higher geopolitical risk. The...
Will GBPNZD rise back above 2?

Interest rate decisions to influence NZDGBP this week

This week both central banks (Reserve Bank of New Zealand and the Bank of England) will release their latest interest rate decision and both have the potential to cause major fluctuation for NZDGBP exchange rates. New Zealand inflation remains below the RBNZ target therefore the chances of a rate hike Wednesday morning are non existent. However with quarterly inflation rising slightly last month the RBNZ may show some optimism which could have a positive impact on New Zealand dollar exchange rates. However the likelihood is...