Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000 during the high and low points of the past month:
|Currency Pair||% Change||Difference on £200,000|
GBP/NZD rates moved back through 1.85 on Sunday following a stalemate in the New Zealand general elections. Despite current PM Bill English remaining upbeat, it is unclear which of the main parties will be able to form the vital coalition to take power.
English’s National party took 58 seats, whilst the Labour party, led by Jacinda Ardern took 45 seats. These were both short of the 61 seats needed to from a government and the key could now be held by the unpopular socialist Winston Peters. The unpredictable politician won 9 seats and it is he who could well have the final say, in determining which party will form a working government for the coming years.
With his policies seemingly more aligned to Labour, Ardern could be in the driving seat, despite winning less of the public votes.
This uncertainty could lead to pressure on the NZD, with New Zealand’s export driven economy already facing a slowdown, due to a drop in demand for their high yielding dairy produce.
The Pound has made further gains this morning, hitting the dizzy heights of 1.8670 before retracting slightly.
It is now likely that the Pound will find support above 1.85, with a cloud of uncertainty, much like we have seen in Germany following their national elections, putting pressure on the Kiwi Dollar.
If a working government is formed quickly the NZD could bounce back, due to the pressure and minimal investor confidence in the UK. However, whilst there are so many unanswered questions and multiple countries seemingly torn in how they want to be run, are you prepared to risk losing value on your currency?
Thank you for reading my New Zealand currency report, if you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries on 01497 725 353 or email me here.