This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. For current live exchange rates click here.
The NZD rallied nearly 5 cents against the pound During yesterday’s trading as the Royal bank of New Zealand announced it would not be altering its interest rate in its latest monetary policy decision. To put this into perspective, a purchase of €200,000 over £2,500 more expensive.
Although inflation is currently sat below where the RBNZ would like, this is a global trend and the New Zealand economy is currently performing well and higher oil prices will look to lift inflation in the coming months. However, if inflation doesn’t start to lift, analysts have said that there could be a rate hike as soon as August.
Overnight, the pound strengthened marginally against the Kiwi. The latest set of Electronic card data was released which gives an insight into consumer spending, which is an indication of inflation and helps the RBNZ to decide interest rates.
After the shock decision on Thursday morning to keep interest rates on hold, the latest figures do point to an interest rate hike at the next policy meeting. An interest rate hike normally strengthens the currency question, so any clients looking to buy New Zealand Dollars should take advantage of the current levels, whilst GBP/NZD is comfortably above the 2.00 mark.
Our job at Currencies.co.uk is to help our clients time their transfer by keeping them informed of the latest data releases. For example, next week Gross Domestic Product and Business PMI are set to released which can create volatility on the market.
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