Losses Predicted For Pound New Zealand Dollar Exchange Rate GBP/NZD

March 27, 2014 - Written by David Woodsmith

STORY LINK Losses Predicted For Pound New Zealand Dollar Exchange Rate GBP/NZD

Sterling has enjoyed strong support so far today thanks to a stronger than anticipated set of UK Retail Sales numbers for last month. The closely-watched data release revealed that British shop sales were up by 4.2% from February 2013 – massively above economists’ expectations of a 2.9% print. The figure provided further encouragement regarding the strength of the UK’s ongoing economic recovery and bode well for the hotly anticipated Q1 Gross Domestic Product growth data, an initial version of which is due out next month.

The Pound has soared to its highest levels since the start of the month against the euro in response to the numbers, sending the Pound euro exchange rate up to as high as 1.2094 GBP/EUR earlier on. Meanwhile, the Sterling US Dollar exchange rate has convincingly broken back above the 1.6600 GBP/USD threshold in early trading. If tomorrow morning’s finalised version of the UK’s Q4 GDP data confirms earlier estimates of a respectable year-on-year showing of 2.7%, then look for GBP/EUR to edge up towards its 13-month high in the mid-1.2200s before the weekend market shutdown.

Elsewhere, the New Zealand Dollar has been the one widely-traded currency which has registered any significant gain against the Pound so far today. The move has been triggered by last night’s New Zealand trade numbers for February which revealed a higher than expected level of shipments out of New Zealand (NZ$4.56bn). Meanwhile, the overall Trade Balance figure printed at a stronger than expected NZ$818m, suggesting that the Kiwi economy is now beginning to move forward with some momentum. The Pound New Zealand Dollar exchange rate slumped to 1.9078 GBP/NZD as a result and, given the recent go-ahead tone of comments from the Reserve Bank of New Zealand, there could be further losses to come for GBP NZD in the months to come.

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