Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Falls Today
Today’s Exchange Rate News in Brief – GBP/NZD Plummets 0.5%
The Pound Sterling to New Zealand Dollar exchange rate experienced minimal movement on Tuesday following the release of the Real Estate Institute of New Zealand’s (REINZ) Home Price Index.
Key Point – The -0.7% month-on-month decline in July’s house prices was over twice the -0.3% drop registered in June. The REINZ House Sales report showed a year-on-year slump of -13.0%.
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REINZ Statement: ‘The real estate market is firmly in winter mode at present with listings low and activity muted across the country. Sales volumes picked up a little in July compared to last month but this is about in line with the normal seasonal pattern. Rising interest rates and the forthcoming election are probably also influencing buyer behaviour.’
The UK’s disappointing Like-for-Like Sales report from the British Retail Consortium did help the New Zealand Dollar advance modestly on the Pound, but movement was restricted ahead of the UK’s more influential stats.
Exchange Rate Movement – Pound Sterling to New Zealand Dollar (GBP/NZD) hits a low of 1.9825.
On Wednesday the GBP/NZD currency pairing plummeted after the UK’s employment figures disappointed expectations and the Bank of England’s Inflation Report provided a negatively revised growth projection for the UK.
In its inflation report the Bank of England (BoE) asserted; ‘The final estimate of four-quarter growth, taking into account expected future revisions, is projected to ease back from around 3½% in 2014 to around its pre-crisis historical average rate. The risks around that central projection are skewed a little to the downside. […] The projection assumes that global growth remains steady in the face of continuing economic and financial challenges. In the euro area there are downside risks, associated with a prolonged period of weak inflation and low growth in the periphery, which could re-awaken concerns about debt sustainability. Globally, marked rises in financial market volatility and corrections in asset prices, perhaps associated with a normalisation in US monetary policy, pose significant downside risk.’
The Pound Sterling to New Zealand Dollar is likely to hold these declines overnight and could extend losses if New Zealand’s Performance of Manufacturing Index and Retail Sales ex Inflation reports impress.
GBP/NZD Exchange Rate Forecast
There is little additional economic news on the cards for New Zealand over the rest of the week, but further Pound to New Zealand Dollar exchange rate movement could be caused by UK RICS House Price Balance figures and UK Q2 GDP figures. Unless the UK’s growth data delivers a massive positive surprise the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to continue trending in a softer position.