GBP NZD Exchange Rises as MPs Plan to Scrutinise Governments Brexit Strategy

January 25, 2017 - Written by Frank Davies

STORY LINK GBP NZD Exchange Rises as MPs Plan to Scrutinise Governments Brexit Strategy

The British Pound to New Zealand Dollar exchange rate advanced on Thursday afternoon, though the pair failed to maintain the weekly highs seen in the morning.

After its relatively strong movement for most of the week, the New Zealand Dollar weakened on Thursday as risk-seeking traders looked to stocks instead of commodity-correlated currencies. Fears that TPP talks would disappear completely also weighed on the NZD.

[Previously updated 26/01/2017]

A continued weakening in market risk appetite benefitted the Pound to New Zealand Dollar exchange rate further on Thursday, trending higher in the region of 1.7375.

Even though the New Zealand inflation rate was found to have strengthened further than forecast overnight this was not enough to improve the appeal of the antipodean currency at this juncture.

[Previously updated 25/01/2017]

The GBP NZD exchange rate rallied following its brief drop yesterday, climbing by over a cent this morning as opposition MPs began to plan possible amendments to the upcoming Brexit bill.

Brexit Bill Opposition Prompts Pound New Zealand Dollar (GBP NZD) Rally

The Pound New Zealand Dollar (GBP NZD) exchange rate surged this morning as the Supreme Court ruling requiring a parliamentary vote on Article has given opposition MPs and Tory backbenchers the opportunity to seek amendments to the government's Brexit proposals.

One of the concessions called for by Labour and some rebel Conservatives was the publishing of a white paper detailing the government’s plans for negotiating the UK’s exit from the EU. With Labour warning that it is willing to engage in ‘hand-to-hand combat’ with the government to ensure that its plans are properly scrutinised.

While Theresa May confirmed that a white paper would be published in today’s PMQs she did not specify when they would be released, being unwilling to confirm whether it would be released before the Article 50 bill, which is expected soon.

Meanwhile the Liberal Democrats are seeking a referendum on the terms of Brexit, with leader Tim Farron vowing to block the bill unless the public is given some say on how the UK will leave the EU, saying;

‘We take the view that the vote in June was a vote for departure from the European Union. It was not a vote for destination.’

New Zealand Dollar Drops as Japan Rejects Attempts to Salvage TPP

The New Zealand Dollar weakened on Wednesday as Japan rejected calls by Australian Prime Minister, Malcolm Turnbull to continue pursuing the Tran-Pacific Partnership after Donald Trump announced that the US would be pulling out of the trade agreement.

Japanese Prime Minister, Shinzo Abe rebuffed attempts to salvage the agreement as he said the deal was ‘meaningless’ without the participation of the US.

He also expressed his unwillingness to enter a deal that involved China, after some suggested it could take the place of the US, fearing that it would give the country too much economic power in the region.

GBP NZD Exchange Rate Forecast: UK GDP Figures Ahead

The GBP NZD exchange rate is likely to slide tomorrow morning following the release of the UK’s fourth quarter GDP figures, with economists expecting that a slowdown in the UK economy towards the end of 2016 will cause the growth rate to slip from 2.2% to 2.1%.

Meanwhile the New Zealand Dollar may rise later this evening as the domestic Consumer Price Index is expected to report that inflation rose from 0.4% to 1.2% in the last quarter of 2016 reaching its highest levels since July 2014 as New Zealand’s economy performed strongly last year.

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