The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has been trending narrowly today after spiking during the Australasian session. The Pound is currently printing in the region of 2.4537, its best rate since mid-2009.
Exchange Rate News: GBP/NZD drops Today after BoE Minutes, Sterling Uptrends Elsewhere
The Pound’s (GBP) close trading against the ‘Kiwi’ (GBP/NZD) today has not been indicative of its performance as a whole; the Pound has on average risen by 0.2-0.3% against most rivals following the Bank of England (BoE) Monetary Policy Committee (MPC) minutes coming out positively for the UK economy. Highlights included rises of over 0.3% against the United Arab Emirates Dirham (GBP/AED), the Israeli New Shekel (GBP/ILS), the Japanese Yen (GBP/JPY) and the Romanian Leu (GBP/RON). Lowlights have been made up of losses of -0.3% against the South African Rand (GBP/ZAR), -0.4% against the Mexican Peso (GBP/MXN) and -1% against the Australian Dollar (GBP/AUD).
The highly anticipated BoE minutes have been mostly positive for the Pound today; although the interest rate decision was an echo of last month’s 8-1 freeze vote with Ian McCafferty making up the ‘1’, the MPC was otherwise copacetic with the Chinese situation, contenting themselves to monitoring events in the East by stating ‘Global developments do not as yet appear sufficient to alter materially the central outlook described in the August Report, but the greater downside risks to the global environment merit close monitoring for any impact on domestic economic activity.’
‘Kiwi’ Holds the Fort after RBNZ Rate Cut, Further Cuts ‘Likely’ According to RBNZ’s Wheeler
The New Zealand Dollar (NZD) has posted an incremental gain against the Pound (NZD/GBP) today, although in an inversion of the Pound’s historic highs, the ‘Kiwi’ is currently trending close to 0.4075, its worst faring in over 5 years. The most recent bit of NZ news was the Reserve Bank of New Zealand’s (RBNZ) interest rate decision yesterday, which saw the RBNZ cut the rate from 3% to 2.75%. Although a negative factor, the cut met with expectations, lessening the detrimental impact.
However, the words of RBNZ Governor Graeme Wheeler were less expected, as he expressed his opinion that the New Zealand interest rate would return to 2.5% within the year.
GBP/NZD Exchange Rate Forecast: NZ Manufacturing Data comes Ahead of Further BoE News
The next major data release to affect the pairing will be the New Zealand Business Performance of Manufacturing Index for August, which has no current forecasts. Tomorrow, however, the BoE once again takes centre stage with the announcement of its Inflation Rate estimate for the next 12 months.
Current GBP, NZD Exchange Rates
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.4535 and the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4081 today.
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