The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate ends the week trending in a softened position, and with UK data lacking today we predict that further movement is likely to be limited.
Over the course of the week the Pound has spiked against several of its rivals in response to yo-yoing interest rate hike speculation.
Sunday’s comments from Bank of England Governor Mark Carney brought forward rate hike bets, the UK’s lacklustre inflation figures pushed them back, the BoE minutes saw the prospect of a 2014 rate increase climb and Thursday’s below-forecast UK retail sales reversed the situation (yet again).
In such a climate the Pound has both rallied to multi-week highs against several of its peers and slumped to lows.
The New Zealand Dollar has been through a similarly rocky time as New Zealand’s Producer Prices declined, the Reserve Bank of New Zealand cut its growth and inflation forecasts, commodity prices faltered, the ANZ Consumer Confidence Index slid and Credit Card Spending declined in July.
Over the last five days the GBP to NZD pairing has hit highs of 1.9844 and lows of 1.9654.
The New Zealand Dollar has also weakened notably against the US Dollar and, as it stands, the NZD/USD pairing is heading for a five-day decline of 0.9%.
The direction the NZD/USD exchange rate takes before the weekend will largely depend on the tone adopted by Federal Reserve Chairwoman Janet Yellen at the Jackson Hole Symposium later today.
According to market strategist Imre Speizer; ‘Is she going to dial back on the hawkish script we saw in the FOMC minutes? That will be the question. If Yellen signals that rates are going up, then it’s come on US Dollar and the Kiwi/USD falls towards 83’ US cents.
The GBP/NZD is likely to continue trading in its present range into the weekend unless anything related to UK interest rate hikes emerges from today’s gathering of central bankers.
Pound Sterling to New Zealand Dollar Weekly Forecast
Next week is rather light in terms of economic reports for both the UK and New Zealand, although there are some potentially market-moving reports to take into consideration.
Given that the price of dairy produce (New Zealand’s main export) has been falling in recent weeks, New Zealand’s trade balance data for July – due out on Monday – will be of interest. If the nation’s surplus is shown to have contracted it could cause ‘Kiwi’ weakness.
New Zealand’s ANZ Consumer Confidence Index is also scheduled for publication on Monday.
Tuesday’s New Zealand Food Price report is unlikely to spark much movement, but the nation’s building permits figures have the potential to trigger GBP/NZD volatility on Thursday.
As the week draws to a close, the GBP to NZD exchange rate could fluctuate in response to New Zealand’s ANZ Activity Outlook figure and the NBNZ Business Confidence report.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trading in the region of 1.9705.
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,0.8442,
New Zealand Dollar,,Euro,0.6322,
New Zealand Dollar,,Australian Dollar,0.9044,
New Zealand Dollar,,Pound Sterling,0.5071,
US Dollar,,New Zealand Dollar,1.1881,
Euro,,New Zealand Dollar,1.5781,
Australian Dollar,,New Zealand Dollar,1.1072,
Pound Sterling,,New Zealand Dollar, 1.9705,
[/table]
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