Losses Forecast For Pound New Zealand Dollar Exchange Rate On Import / Export Data

Modified: Friday, 28 February 2014 10:36 BST - Written by James Fuller

STORY LINK Losses Forecast For Pound New Zealand Dollar Exchange Rate On Import / Export Data

Figures published earlier this morning by the Office National Statistics (ONS) confirmed that UK economic activity expanded by 0.7% during the final three months of 2013. The number provided confirmation of earlier British government estimates of Q4 economic growth and revealed that the UK economy expanded at an annualised 2.7% in the final quarter of last calendar year. However, the data was by no means good news all the way for the Pound – the official numbers also included a slight downward revision to the total level of UK growth last year from previous estimates of 1.9% to 1.8%.

The ONS attributed the respectable level of Q4 growth to a sharp increase in business investment during the final three months of last year – up 2.4% from the previous quarter’s level. The figures had a relatively neutral effect on Sterling; by the middle part of today’s European equities session the Pound euro exchange rate was trading around the 1.2150 level GBP/EUR. Meanwhile, the Pound US Dollar exchange rate also remained relatively static and was trading down by 0.04% at the same stage of the trading day GBP/USD.

Looking ahead, this evening’s New Zealand Trade Balance numbers, due out at 2145hrs GMT, are likely to prove market moving for Sterling. A healthy export surplus of just over NZD4.1bn is anticipated while the month-on-month New Zealand imports figure is expected to reveal a slight drop from December’s NZD4.24bn showing. With the Pound New Zealand Dollar exchange rate GBP/NZD stubbornly remaining close to its key level of resistance just above the two to one level, it would not take much from this evening’s numbers to send the pair back down into the lower part of the 1.9000 – 2.0000 range once more. The latest Swiss Gross Domestic Product numbers, out first thing tomorrow morning also have the potential to provoke price action for the Pound Swiss Franc exchange rate GBP/CHF.

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