Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Strengthen on Geopolitical Upheaval
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate gained by around 0.40% on Thursday afternoon.
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With the situation in Libya escalating, and with Greece and the Eurogroup unable to find a utilitarian resolution, it is unsurprising that the risk-correlated ‘Kiwi’ (NZD) softened versus many of its major peers. Additional declination is as a result of disappointing domestic data.
The Pound Sterling, meanwhile, strengthened versus most of its major peers as a result of better-than-expected domestic data. Also aiding the Sterling uptrend is speculation that the Bank of England (BoE) will initiate a rate hike cycle before other major central banks.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.0538.
Pound Sterling (GBP) Exchange Rate Gains on Factory Growth
The Confederation of British Industry (CBI) Trends Selling Prices avoided the median market forecast declination from -6 to -7, with the actual result advancing to 8. Additionally, CBI Total Orders bettered the market consensus of a rise from 4 to 6, with the actual result reaching 10.
‘Our manufacturers have more of a spring in their step this month, regaining some of the momentum lost towards the end of last year,’ said Rain Newton-Smith, economics director at the CBI. ‘The drop in oil prices is good news for the manufacturing sector in the UK, bringing with them lower operating costs, but North Sea producers are clearly suffering.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low of 2.0401 today.
New Zealand Dollar (NZD) Exchange Rate Softens on Consumer Confidence
New Zealand’s Consumer Confidence Index declined by -3.8% in February, dropping from 128.9 to 124.0; initiating the ‘Kiwi’ downtrend. ‘We’re not reading too much into the dip – though it is interesting that lower interest rates and petrol prices have not yet engendered the usual Pavlovian response,’ ANZ Bank New Zealand chief economist Cameron Bagrie said in his report.
Additional losses are as a result of damp market sentiment amid mounting geopolitical tensions. After Libya asked the UN to end the arms embargo in order to fight the Islamic State, fears that the situation will escalate into war has had a market affect of trader risk appetite.
‘Libya needs a decisive stance from the international community to help us build or national army’s capacity and this would come through a lifting of the embargo on weapons so our army can receive materiel and weapons so as to deal with this rampant terrorism,’ Libyan Foreign Minister Mohamed Dayri told the council.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Hold Gains
With geopolitical tensions in Lybia and Greece looking unlikely to resolve any time soon, and with a lack of influential data to drive changes, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to hold gains for the remainder of Thursday.
There is the potential for heightened Sterling volatility on Friday with several influential domestic data publications to provoke movement. Retail sales data will be of interest to see whether low oil prices have translated into higher sales.
The pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate climbed to a high of 2.0576 today.