Last week the New Zealand Dollar came under pressure as its largest export fell by 3.9%. This being the price of whole milk which fell at the first Global Dairy Auction of the year. This is starting to be a trend for the price in milk as it fell by 0.5% at the last meeting of 2016.
Most forecasters were actually expecting a recovery so this fall in price resulted in a correlating fall in the value of the New Zealand Dollar.
Going forward this week there is little domestic data of note for the New Zealand Dollar which could push its value higher once more. As a result its value this week is most likely to be driven by general market sentiment and any changes in the risk appetite of traders.
This month’s decision by the Supreme Court is widely expected to dramatically change the value of the Pound and therefore all currency purchased. The bookmakers who seem to have been the best at forecasting such events as the Brexit itself and Trump election, are giving the shortest odds on the outcome that Government will have a vote on change.
If this was to become a reality I expect GBP/NZD exchange rates to potentially climb back towards 1.80. If however the vote is taken away from Government and the legal position is that Theresa May can trigger Article 50 much sooner, I would not be surprised to see this have a negative impact on the Pound and drive GBP/NZD rates towards 1.70.
The ramifications of this legal decision are significant and could make a dramatic difference to the value of the Pound. Impacting clients budgets for anything from property in France to relocating to the Southern hemisphere. If you are planning either of these or indeed have exposure to the currency market, the events in the coming days are huge. Make sure to contact your broker here for more information on how to get the most for your money.
Thank you for reading my New Zealand Dollar update, if you have any questions about GBP/NZD exchange rates I would be more than happy to discuss them – you can contact me with any queries at firstname.lastname@example.org.
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