Sterling has fell significantly against the New Zealand Dollar following the UK’s decision to leave the EU. It is currently one of the best times to sell New Zealand Dollars in a decade. The question is will the pounds decline continue? If I had to put my money where my mouth is I would say yes. New Zealand’s economy is strong and allows potential for the Reserve Bank of New Zealand (RBNZ) to consider raising interest rates. When this is added to the uncertainty, surrounding trade deals for the UK post-brexit the pound could well have further room to fall.
Trade balance data comes in tonight at 22.45. Trade data can be of significant importance due to exports to China being so influential to the health of New Zealand’s economy. I think there is the possibility of a slight fall due to China’s slowdown in growth which may create an opportunity for New Zealand buyers.
If you have to purchase New Zealand Dollars short to medium term, it would be wise to consider a Forward contract. As I think it will be difficult for Sterling to rally until trade negotiations are in full swing.
A forward contract enables a client to book at today’s rate of exchange by placing a small deposit and then pay at a later date of the client’s choosing. If you would like to have further information about this type of contract please do not hesitate to get in touch by calling one of our experienced brokers on 01494 725353.
Daniel Johnson is efficient, courteous & everything happens on time as directed. FCD would always be my first choice for currency purchases.
Superb service from Daniel Johnson that just gets better.
A very fast and professional service all round from contact to delivery of currencies to one’s chosen destination. Daniel Johnson is the epitome of that fine service too!