NZ Dollar Forecast 2015: Long Term Losses Forecast For GBP to NZD Exchange Rate

October 24, 2014 - Written by John Cameron

STORY LINK NZ Dollar Forecast 2015: Long Term Losses Forecast For GBP to NZD Exchange Rate

Currency News UK brings you the longer term exchange rate forecast for the British Pound to New Zealand Dollar conversion.

The big loser in the global currency markets yesterday was not the Pound Sterling (GBP) or the euro (EUR) but instead the NZ Dollar (NZD).

The Kiwi has endured a rollercoaster six weeks of it, with the GBP NZD exchange rate breaching the 2.1000 threshold following the revelation from the Reserve Bank of New Zealand that it had intervened during the Summer months to actively weaken its local currency.

However, the New Zealand unit has pushed ahead against Sterling during recent sessions as investors fretted about the softer tone of economic releases emanating from the UK.

The resultant move sent the GBP to NZD back down through the two to one level last week.

The Pound to New Zealand Dollar conversion rate today is -0.02 pct lower at 2.04719 GBP/NZD.
The Euro to New Zealand Dollar exchange rate is -0.19 pct lower with a conversion rate of 1 EUR equals 1.61316 NZD.
The US Dollar to New Zealand Dollar conversion rate is -0.33 pct lower at 1.27360 USD/NZD.
The Canadian to New Zealand Dollar exchange rate is -0.33 pct lower with a conversion rate of 1 CAD equals 1.13457 NZD.
The Aus Dollar to NZ Dollar conversion rate is +0.27 pct higher at 1.12158 AUD/NZD.

Don't forget if you are waiting to find better exchange rates for a international payments, then you're best bet is to set up your future rate order with a foreign exchange broker.

Pound vs NZ Dollar: New Zealand Inflation Data Hurts NZD/GBP

However, last night’s Asian session brought the publication of a worrisome set of local inflation numbers which have held back the New Zealand Dollar so far today.

The official data revealed that the annualised rate of Kiwi price rises had tumbled to 1.0% during quarter 3, down from a significantly higher 1.6% during the three months to the end of June.

The consensus prediction amongst analysts had been that the closely-monitored number would show at 1.2%, so the New Zealand tender gave up ground across the board as a result.

The shift higher which followed for GBP NZD sent the pair up by well over 1.0% to an intraday high of 2.0509.

Pound to New Zealand Dollar Rate Forecast: 2015

Stephen Toplis of the Bank of New Zealand analysed the data earlier, observing that, ‘New Zealand looks ripe for an inflation blow out but the global environment is, fortuitously, conspiring against this. Taking all things into consideration, we have thus lowered both our short and medium term inflation forecasts.’

The implication of his comments is that, when the current dip in global oil prices works its way through, the residual pace of price rises in New Zealand will be relatively high.

The Reserve Bank of New Zealand is likely to respond with a series of interest rate hikes which are forecast to send the GBP NZD lower next year.

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TAGS: Currency Predictions New Zealand Dollar Forecasts Pound Ne Forecasts