Pound Gains against New Zealand Dollar (GBP/NZD) on Upbeat UK Data, Dairy Prices Fall

December 3, 2014 - Written by James Fuller

STORY LINK Pound Gains against New Zealand Dollar (GBP/NZD) on Upbeat UK Data, Dairy Prices Fall

Pound to New Zealand Dollar Exchaneg Rate (GBP/NZD) Climbs on Upbeat UK Data, Dairy Prices Fall

The Pound advanced against the New Zealand Dollar when it emerged that New Zealand farmers could experience additional losses in the coming months due to weather conditions.

An El Nino weather pattern has emerged and is likely to cause drought in some areas of New Zealand. As a result, water restrictions could be put in place, limiting the amount of land that can be irrigated. In addition, the latest Fronterra dairy auction saw prices fall yet again. Agricultural expert Susan Kilsby commented: ‘Not only were the results poor at the auction, but the price outlook has also softened. The prices of the contracts which are scheduled to expire in April to June 2015 dropped the most in value, indicating a further slowing in the price recovery.’

Latest NZD rates Today

The New Zealand Dollar to Australian Dollar exchange rate is +0.17 pct higher with a conversion rate of 1 NZD equals 0.92386 AUD.
The New Zealand Dollar to Canadian Dollar exchange rate today is converting -0.88 per cent lower at 0.88176 NZD/CAD.
The New Zealand Dollar to Euro exchange rate converts +0.02 per cent higher at 1 NZD is 0.62991 EUR.
The New Zealand Dollar to Pound Sterling conversion rate is -0.84 pct lower at 0.49438 NZD/GBP.
The New Zealand Dollar to US Dollar exchange rate is -0.59 pct lower with a conversion rate of 1 NZD equals 0.77550 USD.

Favourable data could help the New Zealand Dollar recover some lost ground, but with only House Prices figures due out in the remainder of the week, the ‘Kiwi’ is likely to remain bearish. In comparison, the UK will have a more eventful end to the week with the Bank of England (BoE) scheduled to release its final interest rate decision of 2014. Some hawkish economists had hoped that the central bank would raise interest rates before Christmas. However, as more poor UK data emerged and the BoE dropped its inflation forecast, hope of a central bank rate raise this side of Christmas was taken off the table.

Wednesday saw some positivity for the UK when the nation’s services sector expanded by more than economists had forecast. Markit’s UK Services Purchasing Managers Index (PMI) climbed to 58.6—a development that encouraged the Composite measure to jump to 57.6. Economist Samuel Tombs commented: ‘The pick-up in the UK Markit/CIPS services PMI in November provides reassurance that the UK’s economic recovery has remained strong despite a weaker global environment.’

Tombs continued: ‘Looking ahead, with households’ and firms balance sheets in improved health, confidence high and real incomes set to record their strongest growth in more than a decade in 2015, we doubt that the recovery is about to run out of momentum. Our forecast remains for GDP to grow by 3% in both 2015 and 2016.’

New Zealand Dollar Exchange Rate Forecast

Bank of England officials are scheduled to speak on Thursday after the announcement—any hawkish tones could see the Pound advance, while any dovish statements could pressure the Sterling exchange rate lower. Friday’s UK 12-Month Inflation Report could also be a major source of currency movement after recent BoE forecasts were cut.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Currency Predictions Daily Currency Updates New Forecasts