The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced by around 1.44% on Monday afternoon.
With a distinct absence of British economic data to provoke Sterling volatility, the Pound fluctuated versus its most traded currency rivals. The British asset is unlikely to sustain any significant gains with the forthcoming general election weighing on investor confidence amid political uncertainties.
The New Zealand Dollar, meanwhile, softened versus nearly all of its most traded currency competitors after trade data out of China showed the surplus narrowed considerably. The ‘Kiwi’ (NZD) gained over its South Pacific neighbour, however, thanks to positive domestic data results.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9680.
Pound Sterling (GBP) Exchange Rate Fluctuates on Lack of Data
With a complete absence of domestic data to drive changes, the Pound’s movement has been subject to fluctuations in the currency market. Sterling managed to gain versus risk and commodity-correlated currencies thanks to disappointing trade data out of China weighing on market sentiment.
In general, however, the Pound is unlikely to sustain any significant appreciation under the umbrella of political uncertainty. With the forthcoming general election looming, and no major party having a sizeable majority, the potential for a complete policy overhaul has seen dampened demand for the British asset.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low today of 1.9421.
New Zealand Dollar (NZD) Exchange Rate Dives on China’s Trade Data
China’s trade surplus narrowed considerably in March, seeing demand for the high-yielding ‘Kiwi’ fading rapidly. China’s Trade balance was forecast to drop from $60.62 billion to $40.20 billion, but the actual result declined to $3.08 billion. This was as a result of March’s Exports declining by -15% on the year.
‘We can understand the imports fell because of falling imports of commodities, but exports fell so much, it was very much unexpected,’ said Shanghai-based analyst Nie Wen from Hwabao Trust.
The ‘Kiwi’ did however avoid falling as much as its Oceanic counterpart thanks to positive domestic data. March’s Card Spending improved by 1.3% on the month, whilst Retail Card Spending equalled the median market forecast growth of 0.8% on the month.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Hold Gains
Given the distinct lack of demand for high-yielding assets, and with a lack of influential domestic data to drive changes, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to hold gains for the remainder of Monday’s European session.
Tuesday will see heightened GBP/NZD volatility with UK inflation data due for publication. The Bank of England (BoE) and rate hawks will be hoping inflation moves away from the flat line figure registered previously.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced to a high of 1.9634 today.
