In the wake of dovish minutes from the Bank of England’s most recent monetary policy meeting, the Pound has depreciated against nearly all of its 16 most traded currency peers. The New Zealand Dollar, meanwhile, has been little changed since Tuesday’s surge from Chinese factory output.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0118.
On Tuesday the Pound declined significantly from a recent positive run after public finances data showed unwanted advances. Public Finances rose from 1.9 billion to 17.7 billion in September, and Public Sector Net Borrowing increased from 10.7 billion to 11.1 billion despite predictions of a fall to 9.4 billion.
Conversely, the New Zealand Dollar firmed up against the majority of its most traded currency competitors on Tuesday from a combination of positive Chinese factory output and improved market sentiment. Chinese Industrial Production increased from 6.9% to 8.0% on a yearly basis, eclipsing forecasts of a rise to 7.5%.
As mentioned above, additional ‘Kiwi’ (NZD) gains were as a result of improved market sentiment. With geopolitical concerns taking a back seat in trader focus, investors have bolstered high-yielding currencies for short-term profits.
The Pound Sterling to New Zealand Dollar exchange rate has fallen to a low today of 2.0095.
Wednesday’s Bank of England minutes have seen the Pound slump against nearly all of the majors. Although the two usual suspects still voted for a rate hike, it seems they will be continuously overruled, especially as this is the third consecutive meeting in which they have been ignored.
The lack of urgency to increase the benchmark interest rate is particularly frustrating to traders, especially considering the International Monetary Fund warned that sustained low interest rates could encourage reckless investment.
Most of the MPC’s nine members voted against an increase, arguing that the lack of inflationary pressure doesn’t warrant a hike. ‘For these members, there remained few signs of inflationary pressure in the UK economy, even after looking through the effects of a stronger Sterling exchange rate,’ the minutes said.
On Wednesday the New Zealand Dollar has remained relatively unchanged without any data to provoke volatility.
Pound to New Zealand Dollar Exchange Rate Forecast to Decline
Late on Wednesday evening the New Zealand Consumer Prices Index ought to provoke ‘Kiwi’ movement. It is forecast to drop from 1.6% to 1.2% which is still within the parameters of the Reserve Bank of New Zealand’s inflation target of 1-3%.
Thursday’s British retail sales data is likely to initiate changes for the Pound. Yearly Retail Sales is expected to decline from 4.5% to 3.4%.
The Pound Sterling to New Zealand Dollar exchange rate has reached a high today of 2.0247.
UPDATE
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0415.
Since markets opened on Thursday the Pound to New Zealand Dollar exchange rate has remained relatively unchanged given the lack of data pertaining to either country.
The UK Retail Sales data, due for publication later on Thursday morning, is likely to initiate volatility for the exchange rate.
The New Zealand Dollar is likely to depreciate over the course of the day ahead of the trade balance data due for publication late tonight.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.7969,
New Zealand Dollar,,Euro,0.6277,
New Zealand Dollar,,Pound,0.4964,
New Zealand Dollar,,Australian Dollar,0.9070,
US Dollar,,New Zealand Dollar,1.2548,
Euro,,New Zealand Dollar,1.5929,
Pound Sterling,,New Zealand Dollar, 2.0143,
Australian Dollar,,New Zealand Dollar,1.1024,
[/table]
