Pound New Zealand Dollar Outlook: GBP/NZD Exchange Rate Falls as Sterling Softens on UK Jobless Claims

May 14, 2014 - Written by James Fuller

STORY LINK Pound New Zealand Dollar Outlook: GBP/NZD Exchange Rate Falls as Sterling Softens on UK Jobless Claims

Overnight improved risk appetite and climbing stocks pushed the commodity-driven New Zealand Dollar higher against several of its major currency counterparts.

The New Zealand Dollar achieved a seven-week high against the Euro and was stronger against both the Pound and US Dollar during Australasian trading.

The New Zealand Dollar was little-affected by a report detailing a slowing in New Zealand’s retail sales growth.

In the first quarter of 2014 retail sales in New Zealand advanced by less-than-anticipated, climbing 0.7 per cent quarter-on-quarter rather than the 0.9 per cent expected.

This was down from positively revised sales growth of 1.4 per cent in the final quarter of 2013.

However, 10 of the 15 retail industries monitored by Statistics New Zealand recorded higher sales volumes, and the sale of electronic goods jumped by 5.5 per cent.

According to industry expert Tehseen Islam; ‘There has been sustained growth in the sales volumes for the electoral and electronic goods industry, with the trend rising for the past six years.’

The sales report also indicated that the value of total retail sales was 18.3 billion Dollars in the first quarter of 2014, 3.4 per cent more than in the same period of the previous year.

Longer-term, it appears that both retail sales volumes and values have been on the up since the middle of 2009.

While the New Zealand Dollar held gains against peers like the Pound and Euro after this report was issued, Sterling broadly softened after UK jobless claims declined by less-than-forecast.

Average UK earnings also rose by less than hoped for, putting pressure on the Pound.

Further modest GBP/NZD losses were sustained after the Bank of England used its inflation report to restate its commitment to leaving interest rates on hold for the time being.

Later today New Zealand’s business of performance manufacturing index for April could have an impact on the GBP/NZD exchange rate.

The gauge came in at 58.4 in March, well clear of the 50 mark separating growth from contraction, and investors will be hoping for another strong result. An increase could push the New Zealand Dollar higher during Australasian trading.

New Zealand Dollar Exchange Rates Today (14/05/2014)

The New Zealand Dollar to Australian Dollar exchange rate is trading up +0.27% at 0.92396 NZD/AUD.
The New Zealand Dollar to Canadian Dollar exchange rate is trading up +0.2% at 0.94288 NZD/CAD.
The New Zealand Dollar to Swiss Franc exchange rate is trading up +0.53% at 0.77176 NZD/CHF.
The New Zealand Dollar to Euro exchange rate is trading up +0.5% at 0.63257 NZD/EUR.
The New Zealand Dollar to Pound Sterling exchange rate is trading up +0.86% at 0.51702 NZD/GBP.
The New Zealand Dollar to Swedish Krona exchange rate is trading up +0.67% at 5.68739 NZD/SEK.
The New Zealand Dollar to US Dollar exchange rate is trading up +0.47% at 0.86687 NZD/USD.

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