GBP/NZD Exchange Rate Trending Up on Unionist Victory
If you're looking to make an international money transfer, we recommend TorFX.
During the Australasian session the New Zealand Dollar advanced on its British peer as New Zealand’s economy was shown to have grown by slightly more than forecast in the three months through June.
The South Pacific nation expanded by 0.7% on a quarter-on-quarter basis in the second quarter of the year, down from growth of 1% in the first quarter but better than the estimate of 0.6%
Although the mining and farming sectors faltered, the services sector put on its best performance for over seven years.
According to Westpac economist Dominick Stephens; ‘While many export-orientated sectors were weak, the domestic economy continued full steam ahead, or even accelerated.’
New Zealand’s annual growth of 3.9% was the strongest recorded for a decade.
As noted by industry expert Annette Beacher; ‘Unlike the rest of the world you’ve got very strong domestic demand. You’ve got business investment, you’ve got consumption then housing. That’s a set of numbers the rest of the world dreams of.’
The New Zealand Dollar came under pressure recently as the Reserve Bank of New Zealand indicated that it would be taking a break from its rate hiking cycle for some time.
However, if the nation’s fundamentals impress in the weeks and months ahead, the central bank could revise that stance.
The Pound Sterling to New Zealand Dollar fell to a low of 2.0028
While the New Zealand Dollar was trending in a stronger position against its British counterpart on the back of the growth figures, the commodity-driven currency wasn’t fairing so well against the ‘Greenback’.
The NZD/USD exchange rate plummeted to a seven-month low in the wake of the Federal Open Market Committee’s interest rate decision.
The Fed continued with the tapering of stimulus and increased its interest rate expectations for the close of 2015.
The decision prompted this response from strategist Imre Speizer; ‘The retention of the pledge that policy rates would be low for a ‘considerable time’ was a dovish element, balanced by increases to its interest rate forecast.’
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast
During the European session the GBP/NZD pairing remained trading lower as the UK published retail sales data.
UK retail sales were shown to have increased by 0.4% in August month-on-month following a negatively revised gain of 0.4% in July. Sales were up 3.9% on the year, shy of the 4.8% forecast but up from the previous month’s annual figure of 3.3%.
In the hours ahead Pound to New Zealand Dollar exchange rate volatility may well be caused by last minute Scottish referendum jitters.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trading in the region of 2.0055
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0214.
Following the results of the Scottish referendum which saw the Unionists win the vote by 55.3%; Sterling has gained across the board. With an absence of British data the Pound is likely to continue to claw back the losses from the anxieties over the possibility of a divided Britain.
The New Zealand Dollar has strengthened a little from Friday’s domestic data which has printed relatively positively. Consumer confidence has ticked higher in September from 125.5 to 127.7. Month-on-month credit card spending also showed a huge increase from -0.9% to 0.7%.