Pound to NZ Dollar (GBP vs NZD) Exchange Rate Rises Today as Unemployment Bolsters Sterling

October 15, 2014 - Written by Ben Hughes

STORY LINK Pound to NZ Dollar (GBP vs NZD) Exchange Rate Rises Today as Unemployment Bolsters Sterling

Forex markets find the British Pound to NZ Dollar exchange rate (GBP/NZD) climbs as Unemployment Bolsters Sterling.

The Pound to New Zealand Dollar exchange rate was trending higher as NZD weakness continues and Sterling enjoys data support.

The UK saw its Unemployment Rate tumble to its lowest level since 2008 and the onset of the global financial crisis. The record low unemployment has spurred Pound sentiment after Tuesday’s disappointing fall in inflation.

Latest NZD rates today:

The Pound to New Zealand Dollar exchange rate today is converting -1.2 per cent lower at 2.00520 GBP/NZD.
The Euro to New Zealand Dollar exchange rate is -0.49 pct lower with a conversion rate of 1 EUR equals 1.60665 NZD.
The US to New Zealand Dollar rate today is converting -1.98 per cent lower at 1.25188 USD/NZD.
The Canadian Dollar to New Zealand Dollar today is converting -1.43 per cent lower at 1.11244 CAD/NZD.
The Aus Dollar to NZ Dollar exchange rate converts -0.66 per cent lower at 1 AUD is 1.10486 NZD.

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Increased Pound Sterling Momentum as UK Unemployment Hits Record Low

One of the most debated topics in the market relates to interest rate increases. The UK has seen the timeframe for the first increase in borrowing costs pulled forward and pushed back, however one factor that could fuel any adjustments to bank rate is unemployment.

Wednesday’s figures show slack is tightening in the UK economy, and the job market now see’s 73% of people employed—hovering very close to the 73.2% all-time high.

Prime Minister David Cameron commented: ‘The biggest-ever fall in unemployment in history, taking it below 2m, is great news. Our plan is working, but there’s still much more to do.’ Moreover, the number of Jobseeker’s Allowance Claimants has been depreciating for 23 consecutive months.

Last week saw the Bank of England (BoE) maintain the current 0.50% bank rate, but investors are still waiting for meeting minutes to know how the vote broke down.

The past two months have recorded a split vote – the first instances of BoE division since 2011. Two of the nine Monetary Policy Committee (MPC) members have deviated away from the general consensus, voting instead for an increase in borrowing costs.

However, Wednesday’s jobs figures have also received criticism. Employment Change rose by 46K in the three months through August, higher than the forecast 30K, but far short of reaching the previous 74K. Economist Charles Levy commented: ‘Employment increased by only 46,000, far below the rate we have seen in the past year. That coupled with sluggish wage growth which remained at half the rate of inflation in August should start alarm bells ringing and be the focus of the Chancellor’s Autumn Statement.’

Pound to New Zealand Dollar Rate Today: NZD Pressured by Commodity Price Slashes

The NZ Dollar (NZD) has had no choice but to falter in the face of a dovish central bank and the continuing tumble of dairy prices.

The beginning of October saw dairy prices fall to their lowest level since August 2009 in the GlobalDairyTrade auction.

As New Zealand’s largest export, dairy prices can have a drastic effect on the New Zealand Dollar exchange rate.

This week will see the latest auction prices revealed. Another decline could pull down the ‘Kiwi’ further.

Another catalyst for ‘Kiwi’ movement will be the New Zealand Job Advertisements report and the Business Performance of Manufacturing Index, released later on Wednesday.

Meanwhile, Thursday will see the release of October’s New Zealand Consumer Confidence Index which will be the last ‘Kiwi’ data release for the week.

On the other hand, the UK will see BoE official Sir John Cunliffe speak at the annual BBA conference which may offer some Sterling support.

However, Friday will be a quiet data day for both the UK and New Zealand, causing movements in the GBP to NZD exchange rate to be reliant on global developments.

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