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:

Currency Pair% ChangeDifference on £200,000
GBPNZD3.3%NZD $12,960
Kiwi weakness pushes GBP/NZD to 2.00

Will GBP/NZD rates fall below 1.90?

GBP/NZD rates have retracted this week, hitting 1.9021 overnight. The Pound did find some support above 1.90 and has realigned around 1.91 by the opening of European trading. Where the pair heads now is obviously the key question for investors and it seems as though the upward curve seen since the turn of the year has certainly slowed, with Sterling coming under pressure as we enter a key period of Brexit negotiations. Losses this week against the NZD have been mirrored against the majority of the major currencies and now may be the time to protect any Sterling positions in my opinion. A move back towards 1.95 is certainly a gamble, especially when you consider how many negative variables seem to be in place.

Those clients holding Sterling positions need to consider a number of different factors, which could ultimately have a significant impact on the value of their currency exchange.

Looking at the UK economy, it has already been well discussed throughout this report the issues facing us, as we head into crunch talks with the EU regarding trade restrictions and free movement. The decisions that are made will ultimately shape our economic relationship with the EU for the next few decades, if not longer and as such any restrictions put in place on trade could have long lasting negative effects for our own economy.

We also need to consider that the New Zealand economy, despite struggling last year following a change in government and policies, has actually performed extremely well over the past few months. Its economic outlook is strong, with growth forecasts raised in line with an increase in profits. These have come for the most part from their highly lucrative dairy industry and a shrinking of their trade balance figures.

New Zealand economy continues to thrive

Despite concerns of new Prime Minister Jacinda Ardern’s polices and her restriction of non New Zealand nationals in the housing markets, their economy has seemingly weathered the storm. This is likely to help support the NZD over the coming months, potentially strengthening its position back below 1.90 against Sterling.

Whilst the downturn in the global markets could push clients away from riskier assets such as the NZD, the initial impact seems to be minimal. I would be looking to remove any risk from an unsettling and uncertain market and protect myself from any further risk.

We are heading into key period in history, which could ultimately shape the future of the UK economy and the potential ripples it could cause for the global markets are yet to be fully understood.

Thank you for reading my New Zealand currency report, if you have any questions about exchange rates I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.