The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has declined by around -0.18% on Tuesday. This is as a result of compounding negative sentiment towards the Bank of England after Deputy Governor Minouche Shafik commented on dodgy trader practise within the institution. A lack of economic data pertaining to New Zealand on Tuesday has generally seen the South Pacific asset decline against most of its major peers.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0395.
After the publication of minutes from the most recent Bank of England policy meeting, sentiment towards the central bank has taken a particularly negative turn. At the close of 2013 futures traders made bets that the BoE would be the first of the major banks to normalise monetary policy. However, the minutes outlined that there won’t be a benchmark rate increase for the foreseeable future, without so much as an indication as to the timing of said hike.
A particularly sparse economic calendar on Monday saw the New Zealand Dollar soften against many of its most traded rivals. However, with trader risk-sentiment improving as anxieties regarding global economic growth abate, the ‘Kiwi’ (NZD) has avoided any significant declination.
The Pound Sterling to New Zealand Dollar exchange rate has dropped to a low today of 2.0365.
On Tuesday, Bank of England Deputy Governor Minouche Shafik added to the negative sentiment towards the British central bank after making a speech at the London School of Economics. Shafik described some of the trader practise within the institute as ‘truly shocking’ and warned of an extended period of bonus clawbacks to counteract the issue.
‘Much has been done to strengthen the financial system,’ Shafik said in a speech at the London School of Economics. ‘But some of the benefits of these advances are being offset by a long tail of outrageous conduct cases. These are like salt rubbed into the wounds to public confidence in financial markets.’
‘The integrity of the City matters to the economy of Britain,’ Chancellor of the Exchequer George Osborne said in a statement. ‘I am determined to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them.’
Meanwhile, a complete absence of data pertaining to New Zealand has seen minimal volatility for the ‘Kiwi’. However, a slight appreciation can be attributed to yearly Chinese Industrial Profits which rose from -0.6% to 0.4% in September.
Pound to New Zealand Dollar Exchange Rate Forecast to Strengthen
With the Reserve Bank of New Zealand due to make their rate decision on Wednesday, the New Zealand Dollar is likely to soften in anticipation of the result. Most economists agree that the RBNZ is very unlikely to tighten monetary policy, but could potentially introduce stimulus measures to counteract ‘Kiwi’ overvaluation.
Wednesday’s British data certainly has the potential to provoke volatility for Sterling.
The Pound Sterling to New Zealand Dollar exchange rate has risen to a high today of 2.0438.
UPDATE
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0305.
As traders prepare for the British economic data, due for publication later on Wednesday morning, the Pound is generally holding its position against many of its major peers.
However, against the New Zealand Dollar, Sterling has softened as a result of healthy domestic data from the South Pacific country. New Zealand Business Confidence advanced from 13.4 to 26.5, and Activity Outlook increased from 37 to 37.8.
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,0.7890,
New Zealand Dollar,,Euro,0.6213,
New Zealand Dollar,,Pound,0.4897,
New Zealand Dollar,,Australian Dollar,0.8938,
US Dollar,,New Zealand Dollar,1.2672,
Euro,,New Zealand Dollar,1.6092,
Pound Sterling,,New Zealand Dollar, 2.0419,
Australian Dollar,,New Zealand Dollar,1.1187,
[/table]
