- GBP/NZD Exchange Rate falls -0.63% – Strengthened NZD and ‘Brexit’-battered Pound are to blame.
- Voter Registration Issues Mar Pound’s Expected Rise – Overwhelmingly positive market data fails to boost Sterling.
- Commodity Appreciation Helps Bolster NZD – A 1% rise across the board bodes well for the antipodean currency.
- Future Remains Uncertain Ahead of Further Polls – Fate of the Pound sits in the voting publics’ hands as polls prove top influencer.
After the recent strong performance of the Pound, this morning saw the Sterling to New Zealand Dollar exchange rate falling roughly 0.45%, with the pairing extending its decline as trading progressed.
Continuing fears surrounding the UK’s EU referendum and a sharp boost in New Zealand’s commodity prices were the main reasons for the GBP/NZD exchange rate slide. The rate moved from last week’s high of 2.13 to a steady 2.08 this morning after a brief spike yesterday due to polling data indicating a change in opinion towards the UK staying in the EU.
The Pound to New Zealand Dollar exchange rate currently sits at 2.0807 but stands to fluctuate as Sterling’s value may be affected due to UK voter registration problems.
‘Brexit’ Fears and Trouble with Voter Registration Limit Pound
The Pound looks to have tracked downwardly across the board for the most-part today.
Even with this morning’s shining UK industrial and manufacturing reports, the Pound failed to gain any ground as ‘Brexit’ fears continue to propagate amid a major issue with the UK Government’s voter registration website.
The Pound did, however, enjoy a small boost on Monday thanks to the first poll in a while showing a change of heart towards staying within the European Union. The preliminary figures pointed towards a 52% majority to the ‘In’ camp but once data was whittled down to just those certain to vote, ‘In’ only tracked a single point ahead of ‘Out’s 40%.
NZD Balances Out After USD Slump, Kept Afloat by Promising Commodity News
After seeing massive gains last week, in part thanks to the dismal non-farm payrolls report out of the US, the New Zealand Dollar has steadied.
NZD started the week struggling slightly as it balanced out due to the US Dollar regaining some recently lost strength. The ‘Kiwi’ saw a nice boost today however, as New Zealand commodity prices saw a 1% rise. The reports states:
‘In recent months, prices look to have found a floor that they are now bouncing along. Horticulture prices lifted (+6.2%) in the month with the start of new season crop sales. There were also lifts for seafood (+1.1%), forestry (+0.9%) and meat (+1.5%), making the gains broad-based.’
Recent strong returns in New Zealand’s commodities market could spell further increases within the sector as investments and expansions gain momentum.
Polls Still Reign Supreme ahead of RBNZ Announcement
With recent polls still hinting slightly towards the UK staying in the European Union, the Pound enjoyed a much needed boost but more data to be released over the coming weeks is due to effect the Pound with volatility through the roof.
Future polls could shift the markets significantly as public sentiment ebbs and flows, as already seen by the impactful release of Mondays ORB opinion poll. A lot of the Pound’s value sits in the public’s hands. UK construction output data is set to be released later in the week along with a GDP estimate for May. Both reports could spell a rallying for the Pound if they greatly exceeded forecast figures.
Later today, the Reserve Bank of New Zealand will be announcing whether it sees fit to cut its benchmark rates or not and demand is expected to soften as analyst point towards the rates being unchanged.
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