The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate strengthened by around 0.36% on Monday morning.
After British economic data revealed rising house prices, the Pound strengthened against many of its most traded currency rivals. However, with uncertainties surrounding the general election in May, the Sterling appreciation has been somewhat laboured.
The New Zealand Dollar, meanwhile, is generally holding steady against most of its currency competitors as a result of an absence of data to spark movement. A slight declination can be attributed to dampened trader risk sentiment after the SNB’s decision to remove its Euro cap spurred demand for safe-haven assets.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9473.
Pound Sterling (GBP) Exchange Rate Strengthens on Domestic Data
With the British general election looming, the Pound generally slumped versus most of its peers last week as traders fear dramatic changes to policy. However, Monday’s domestic data printed positively, allowing the Pound to gain. However, the appreciation has been somewhat sluggish with the general election still limiting Sterling demand.
Rightmove British House Prices strengthened from 7.0% to 8.2% on a yearly basis, with January’s house prices increasing from -2.2% to 1.4%. ‘There are more positive signs of early-bird activity rather than pre-election jitters or economic worries deterring prospective movers. However, we are only a few days into the year and it remains to be seen whether this initial flurry is sustained,’ stated Rightmove Director Miles Shipside.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low today of 1.9381.
New Zealand Dollar (GBP) Exchange Rate Edges Lower on Risk Aversion
Although the declination has been minimal, the New Zealand Dollar softened versus some of its major rivals in a risk-off environment. In the wake of the decision by the Swiss National Bank (SNB) to remove its Euro cap, trader risk sentiment dampened considerably. This added fuel to a fire containing a possible ‘Grexit’ and ‘Brexit’, Eurozone quantitative easing and low oil prices.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Hold Gains
With a complete absence of domestic data to provoke volatility, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to hold gains on Monday. However, there is the possibility that fluctuations will be caused by the commodities market.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced to a high today of 1.9479.
