The Global Dairy Index is released this evening, New Zealand's largest export is dairy and the NZD has been affected by falling prices of late. The expectation is for this to continue. The table below shows the difference in NZD you could have achieved when buying £200,000.00 during the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
The New Zealand Dollar should see a particularly volatile week with a number of events likely to influence. The Reserve Bank of New Zealand meet tomorrow and will announce its latest interest rate decision. Expectation is for interest rates to be held at 1.75% at the last meeting under acting Governor Grant Spencer before handing over to Adrian Orr. Whilst no change is expected any comments after are likely to have an impact on the kiwi. Data has been mixed and at the last meeting the Governor did not rule out cutting interest rates on the back of weaker economic growth. The New Zealand dollar has weakened over the last week with rates having broken 1.95 yesterday for the GBP NZD pair and taking rates to the highest levels last seen since February.
Further volatility is more likely to rise from developments in the US when the Federal Reserve meet tomorrow. A more hawkish US Fed could see the New Zealand dollar weaken further as funds move away from New Zealand to the higher yielding US Dollar.
Brexit developments in the coming weeks are likely to play a considerable role for GBP NZD. The transitional agreement reached yesterday has already seen a good boost for GBP NZD and any further positive developments could help see the Pound rally. Brexit continues to remain the single biggest driver for sterling exchange rates and clients looking to buy or sell New Zealand dollars for pounds should pay close attention to any new developments as the final stages of later this week could see material gains higher for the pound with a push higher to 2 Dollars.
Clients should also be aware of the Global Dairy Trade (GDT) index released this evening which monitors dairy prices in New Zealand. Dairy is New Zealand’s largest export and so changes here can have a big impact on the kiwi dollar. Prices have been falling in recent months which is expected to continue and could see the kiwi under added pressure.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!
As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉