With the UK unemployment rate amazing economists and dropping to a four-year low, the Pound rallied against its rivals and posted impressive gains against peers like the New Zealand Dollar yesterday.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.4500 as of 11:45 GMT
The Federal Open Market Committee’s shock decision to taper stimulus by twice as much as even optimistic industry experts forecast caused widespread declines in commodity-driven and emerging market currencies and the ‘Kiwi’ consequently slumped during North American trading.
However, the New Zealand Dollar went on to pare declines as a domestic GDP report showed the most impressive growth for four years.
In the third quarter New Zealand’s economy expanded by 1.4 per cent quarter-on-quarter, the most impressive acceleration in growth since 2009 and significantly better than the 1.1 per cent growth forecast.
The nation’s economy expanded by a revised 0.3 per cent in the second quarter.
The NZD/GBP exchange rate hit a low of 0.4987 pence per Dollar
This result increases the likelihood of the Reserve Bank of New Zealand raising interest rates next year, although it did elicit this response from one Westpac economist; ‘The detail of the GDP release was not nearly as impressive as the headline. There’s not a great deal of downside in Kiwi because it’s got such a powerful positive from the outlook for the RBNZ’.
However, during the European session the New Zealand Dollar’s bearish relationship with the Pound resumed as UK retail sales increased in November.
Sales excluding fuel climbed by 0.4 per cent in November month-on-month, slightly better than the 0.3 per cent gain forecast and following a negatively revised decline of 0.7 per cent in October.
Sales including fuel rose by 0.3 per cent MoM and 2.0 per cent year-on-year.
Before the weekend New Zealand’s credit card spending report could be responsible for additional ‘Kiwi’ fluctuations.
Tomorrow’s UK GDP report is also likely to have an impact on the NZD/GBP pairing.
Current New Zealand Dollar (NZD) Exchange Rates:
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8186 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5990 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5000 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.9246 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2220 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9965 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6680 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.0808 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1397 <
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