Pound New Zealand Dollar (GBP/NZD) Forecast To Trade Higher On Fed Minutes

May 22, 2014 - Written by David Woodsmith

STORY LINK Pound New Zealand Dollar (GBP/NZD) Forecast To Trade Higher On Fed Minutes

Pound New Zealand Dollar (GBP/NZD) Forecast To Trade Higher On Fed Minutes - Today’s main event, as far as Pound Sterling-watchers are concerned at least, comes in the form of this morning’s UK Q1 Gross Domestic Product figure.

The British Pound to New Zealand Dollar exchange rate is trading down -0.19% at 1.96915 GBP/NZD.

Recent research from the highly regarding National Institute of Economic and Social Research, which uses the British Treasury’s official modelling software top generate its predictions, found that the total level of output of the UK economy stood at just 0.17% below the maximum level which it reached before the 2007/8 financial crisis at the end of last month, so investors are hoping for a positive showing from the British GDP figures.

Analysts are anticipating that the UK growth figure will point to a year-on-year increase in domestic economic activity of 3.1%, while quarterly growth for the three months to the end of March is expected to print at 0.8%. With levels of optimism surrounding Sterling sending the Pound euro exchange rate (GBP/EUR) up to its highest mark since January 2013 during yesterday’s session, the potential exists for a further move forward if today’s figure comes out above the anticipated level. If yesterday’s upward shift to 1.2367 for GBP EUR is eclipsed today, then the next band of resistance heading higher comes at November 2012’s peak of 1.2562. A failure to break through this level would send out a negative indicator for the pair.

GBP to NZD exchange rate Jumps as investors shun risk-driven assets

Elsewhere, the Pound New Zealand Dollar exchange rate (GBP/NZD) jumped to as high as 1.9764 yesterday as investors shied away from risk-driven assets including the New Zealand Dollar (currency:NZD) thanks to fears that last night’s minutes of the US Federal Reserve’s May policy meeting might hint at a near-term tightening of America’s ultra-loose monetary policy. In the end, the memos from the US central bank’s most recent get-together weren’t too damaging to the Kiwi – they revealed that America’s policymakers has held in depth discussions about how to manage domestic interest rate rises when they eventually arrive, but no time scale was placed for this tightening of monetary policy.

NZ Dollar Exchange Rates Today

- The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.19% at 1.96915 GBP/NZD.
- The Euro to New Zealand Dollar exchange rate is trading down -0.07% at 1.59643 EUR/NZD.
- The US Dollar to New Zealand Dollar exchange rate is trading down -0.08% at 1.16664 USD/NZD.

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