Pound Sterling (GBP) Exchange Rate Forecast to Tick Lower against the ‘Kiwi’ (NZD) after UK Manufacturing Failed to Impress
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within a limited range on Tuesday afternoon.
In general, the British asset declined versus its major peers during Tuesday’s European session. The depreciation can be linked to domestic data which showed manufacturing output failed to meet with economists’ forecasts. The UK Manufacturing PMI came in at 51.5 on a seasonally-adjusted basis, missing August’s median market forecast 52. A rise in UK Mortgage Approvals wasn’t enough to prevent the Sterling downtrend.
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said; ‘The sector was on a go slow trajectory this month, showing a disappointingly slow pace of growth, and barely moving from last month’s figure, raising fears this could be an entrenched situation developing in the next few months. Though there was still a modicum of production activity as output growth rose to a five-month high in response to new orders and in a marketplace mostly reliant on the domestic market as exports fell for the fifth month. Some respondents reported losing work to competitors in a lacklustre environment.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.4168.
New Zealand Dollar (NZD) Exchange Rate Forecast to Hold Steady against UK Pound (GBP) ahead of US Manufacturing Data
As traders await news from the Global Dairy Trade (GDT) auction, the ‘Kiwi’ (NZD) held gains over many of its currency rivals. The appreciation is the result of speculation that dairy prices will rise after tonight’s meeting. The Reserve Bank of Australia’s (RBA) relatively dovish policy outlook, combined with rising house prices and terms of trade, also aided the New Zealand Dollar appreciation.
As Tuesday’s European session progressed, however, the ‘Kiwi’ declined somewhat in response to expectations that US data will print positively. Should US data show manufacturing improved, this will bolster those hoping for a near-term Federal Reserve rate hike and see dampened demand for high-yielding assets. The economic slowdown in China is also weighing on demand for the risk-correlated oceanic currency.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low of 2.4087 during Tuesday’s European session.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Hold Steady ahead of GDT Auction
Although US data has the potential to provoke changes for the New Zealand Dollar, the impact is likely to be short-lived with trader focus dominated by the forthcoming GDT auction. Should dairy prices rise in line with expectations, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to decline significantly. Wednesday could see GBP/NZD volatility with the UK Construction PMI and New Zealand’s ANZ Commodity Price due for publication.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate climbed to a high of 2.4264 during Tuesday’s European session.
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