The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dived by around -0.62% on Tuesday morning.
This is due to better-than-expected data out of China supporting ‘Kiwi’ (NZD) gains. The Pound Sterling, meanwhile, is subject to fluctuations in the currency market as traders await the British data due later on Tuesday morning.
Yesterday…
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dived by around -0.33% on Monday afternoon.
This is as a result of disappointing data out of the UK which showed construction to have slowed in December. The unforeseen drop in British construction is compounding the notion that the British economic recovery is losing momentum. Although oil prices have tumbled below $55 a barrel, the commodities market improved thanks to advancing gold and natural gas prices. This supported a ‘Kiwi’ (NZD) advance.
Pound Sterling (GBP) Exchange Rate Trending Lower on Construction Data
Despite the fact that the Pound was in a position of strength against its antipodean counterpart, fears that the recent data highlights the fact that Britain’s economic recovery has lot momentum has caused the Pound to slump versus most of its major peers.. This is due to a disappointing result from construction data. The Construction PMI was forecast to tick lower from 59.4 to 59.0, but the actual result dropped to 57.6.
Tim Moore, Senior Economist at Markit, stated; ‘UK construction output growth retreated further in December, but another strong expansion of house building activity ensured that the sector continued to perform impressively overall. Indeed, over the course of 2014, UK construction firms recorded the strongest calendar year of residential building since the survey began in 1997.’
The Pound Sterling to New Zealand Dollar exchange rate has dropped to a low today of 1.9915.
New Zealand Dollar (NZD) Exchange Rate Dives on Commodities
After the commodities market recorded its biggest annual loss since 2008, the ‘Kiwi’ (NZD) dived versus the vast majority of its most traded rivals. The large declination has been led by slumping oil prices amid a global glut.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Trend Lower
With the commodities market showing signs of recovery, with the exception of crude prices, the New Zealand Dollar is likley to continue trending higher against the British asset.
The Pound Sterling to New Zealand Dollar exchange rate reached a high today of 2.0062.
