The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dived by around -1.48% on Thursday.
As we get closer to the British general election, speculation that the outcome will result in a UK exit from the European Union has caused the Pound to slump versus most of its major peers.
The New Zealand Dollar, meanwhile, is trending higher thanks to tracking the progress of its South Pacific counterpart. In addition, a report from OPEC which forecasts slower growth in the US oil supply caused prices to rise. This, in turn, saw heightened demand for higher-yielding assets.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9460.
Pound Sterling (GBP) Exchange Rate Tumbles on Election Concerns
As we draw closer to the UK’s general election in May, the Pound softened as traders fear new party politics will dramatically alter monetary policy. A significant potential change is the possibility that the UK will leave the EU. A UKIP win will ensure this, but a conservative victory will also lead to a Brexit referendum.
‘It’s far from clear what the outcome will be, and hanging on this election is a referendum on EU membership,’ Neil Mellor, a currency strategist at Bank of New York stated. ‘No one really wants to own a currency that reflects that much uncertainty.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low today of 1.9621.
New Zealand Dollar (NZD) Exchange Rate Advances on ‘Aussie’ Surge
With the market focused on the Australian Dollar after labour data significantly improved upon expectations, the ‘Kiwi’ advance has been somewhat stealthy as it tracks the ‘Aussie’ gains. A particularly positive result from house sales data, which advanced from 6.5% to 24.2%, also supported the ‘Kiwi’.
A report from OPEC detailed the potential for slower growth in the US oil supply, causing prices to rise. The higher oil prices allows for greater risk-sentiment , supporting the ‘Kiwi’ advance.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Trend Lower
With sentiment towards the Pound particularly rocky amid political uncertainties, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to continue trending lower on Thursday. With that being said, any fluctuation in oil prices is likely to initiate volatility.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate climbed to a high today of 1.9772.
