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...

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...

NZD sell-off continues amid lack of support for the currency

The sell-off of the New Zealand Dollar is continuing this week, as the currency hits multi-month lows against a number of major currency pairs. Those of our readers following the currency will be aware that even though the Australian Dollar is under pressure at the moment in the grand scheme of things, it's still outperforming NZD with the NZD to AUD rate currently trading close to a 2-month low. The US Dollar is also trading at over a four-month high against the Kiwi, and the Pound...

New Zealand dollar struggles due to the US

The New Zealand dollar has had a tough time of late falling to multi-month lows as the US Dollar also known as the Greenback marches forward. NZDUSD is now at the lowest level since December 2017. The reason for the demise in the New Zealand is that US 10-year bond yields rose above the 3% barrier earlier this week and therefore investors have sold off their commodity currencies and purchased the safe haven Greenback. The theory is that the higher the price of a bond the...
Could the Pound improve against the New Zealand Dollar if US interest rates rise?

Will GBP NZD Hit 2 Dollars? (James Lovick)

Rates for GBP NZD have pushed higher this morning hitting a high of 1.9603 for the GBP NZD pair. There is currently an excellent opportunity for buying New Zealand dollars with pounds although whether the pound can push higher is less clear. A move towards 2 dollars is starting to look considerably more likely and there appears to be support for sterling on a brighter economic outlook. The New Zealand dollar also faces a period of uncertainty as the implications of Donald Trump’s international policies...
Pound Euro forecast and the impact of the Tory leadership election

New Zealand Dollar softens as high inflation numbers fail to strengthen the currency

The main event of the week for the New Zealand Dollar was Wednesday nights inflation figures which were released late into the night UK time. The rate of inflation has jumped quite substantially from 0.1% to 0.5% over the past quarter, which is a positive sign moving forward if the Reserve Bank of New Zealand is to begin hiking interest rates. Over the past few years the New Zealand Dollar has benefited from having one of the highest interest rates within the developed world, and...

New Zealand Dollar weakens a little after lower inflation figures

The New Zealand Dollar has dropped off a little against most major currencies following lower than expected inflation figures locally, coming out at 0.5%. This essentially now suggests that the RBNZ (Reserve Bank of New Zealand) may more than likely hold off on any interest rate hikes this year ], this is why the NZD dropped in value as a lower chance of an interest rate hike is priced into the market. An interest rate hike is generally seen as positive for the currency concerned and...