Since the start of the year GBP/NZD levels have stayed comfortably above the 1.90 level, only dropping below on a handful of occasions. The NZD report below discusses the pressure of global trade wars impacting the New Zealand Dollar. The table below shows the range of GBPNZD rates for the past month, highlighting the importance of timing a transfer to maximise on the return.
|Currency Pair||% Change||Difference on £200,000|
The 1.90 level has arguably been a resistance point for the pairing as GBP has experienced sharp spikes in response to the such levels being reached.
Despite the volatility, Sterling’s remained bullish and it appears that we could see mid-market levels test 2.00 once again as we have over the last couple of weeks.
The NZD is a commodity-based currency and the economy relies heavily on its dairy and meat exports to Australia, China and the US which means the current geopolitical tensions with key trade partners has put further pressure on the currency.
The Reserve Bank of New Zealand are set to announce the next interest rate decision tomorrow evening and the Central Bank have held interest rates at 1.75% for almost 12 months. If the bank does decide to raise rates, this could ease pressure of the NZD, which could provide an opportunity for the currency to gain ground.
This evening, there will be imports and exports data and the outcome of which could influence the short-term movement of the currency against its major partners. Exports are expected to show a slight decrease, whilst imports an increase, which could suggest the economy's export market is showing signs of frailty in response to on going global trade tensions.
The current GBP/NZD levels provide a good opportunity for sterling sellers, so clients anticipating an upcoming transfer could benefit by contacting their Account Manager in order to discuss potential strategy in order to prepare for potential movement following the interest rate decision.
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.
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