It has been a volatile week for the NZD, with the Pound being the primary benefactor. The kiwi surrendered its slight gains as Sterling drew strength from David Davis reassuring comments surrounding Brexit. Investors seemed to have shifted their commitments out of the euro as political uncertainty builds within the single market, with GBP being seen as a safer bet.
The Pound jumped from 1.739 to 1.793 yesterday providing short term buying opportunities for well informed Kiwi buyers.
The volatility is set to continue as the Reserve bank of New Zealand boss Graeme Wheeler continues to apply a reactive approach to the current trends within the market. The RBNZ may look at reviewing their easing cycle as the NZD looks to break free from this recent instability.
As a key exporter of whole milk powder, the New Zealand economy could be set for a big boost next week following news that their main European counterparts will have to cap production in order to adhere to European standards.
Having leaped by around 65% since June, the prices for whole milk powder have continued to drive upwards during the second part of this year. The news that dutch farmers will have to reduce their number of cows by almost 11% just to comply with EU regulations means there will be plenty of new business for the NZD to tap into. If you have a NZD requirement, make sure you keep a close eye on information coming out of the Global dairy trade platform next Tuesday.
The New Zealand Dollar has been very vulnerable, like most other commodity currencies, to the fluctuations in the market caused by the ever developing policies put in place by president elect Donald Trump. The US non-farm payrolls released later today could present another set of short term opportunities for buyers and sellers of the GBP/NZD pair. Why not get in touch with your foreign currency specialist to make sure you capitalize on the next spike in the market.
The New Zealand Dollar could be set to rise with the price of milk, and those looking to buy the New Zealand may want to consider making the most of the recent GBP/NZD strength. call our trading floor on 01494 725 353 or email firstname.lastname@example.org if youd like to learn more.
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