The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate strengthened by around 0.36% on Friday morning.
As traders await British trade data, due for publication later on Friday morning, the Pound is generally holding steady against its major peers. The New Zealand Dollar, meanwhile, softened against most of its currency rivals after China’s Producer Price Index declined beyond expectations.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9395.
Yesterday…
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate softened by around -0.65% on Thursday morning.
In the aftermath of the Bank of England rate decision, the Pound slumped versus nearly all of its major peers. Slower paced house price growth has also contributed towards the Sterling declination. The New Zealand Dollar, meanwhile, is trending higher on improved sentiment towards risk-correlated currencies after oil prices gained.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9311.
Pound Sterling (GBP) Exchange Rate Trending Lower ahead of Rate Decision
With speculation rife that the Bank of England will fail to change monetary policy for a significant time period, investors are reluctant to trade with the Pound ahead of the BoE rate decision and Asser Purchase Target.
A slight improvement in house prices hasn’t been enough to combat negative sentiment towards the British central bank. Halifax House Prices rose by 0.9% in December, eclipsing expectations of a 0.3% increase. On a yearly basis, House Prices showed a 7.8% advance in December, down from the 8.1% registered previously but improving upon the median market forecast of an increase by 7.6%.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low today of 1.9246.
New Zealand Dollar (NZD) Strengthens on Improving Market Sentiment
With oil prices increasing, after having fallen below $50 a barrel, market sentiment improved which saw greater demand for higher-yielding assets. The New Zealand Dollar, supported by a rise in dairy prices, is one of the currencies benefitting from a healthier risk appetite.
‘We were due for a minor correction upwards,’ Michael Poulsen, an analyst at Global Risk Management Ltd. said by e-mail. ‘On an isolated basis crude draws were mildly bullish. Intraday fluctuations of 3 percent seem to be the temporary new normal.’
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Strengthen
Although it seems clear that the Bank of England is unlikely to take any immediate action to please policy hawks, the resulting Sterling declination has already been priced in. Therefore, it is very possible that the Pound will strengthen; providing the BoE don’t act dovishly.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate reached a high today of 1.9448.
