Pound to New Zealand Dollar (GBP/NZD) Relatively Static after Earlier ?Kiwi? Gains, BoE Ahead

Modified: Wednesday, 7 January 2015 21:07 BST - Written by James Fuller

STORY LINK Pound to New Zealand Dollar (GBP/NZD) Relatively Static after Earlier ?Kiwi? Gains, BoE Ahead

The Pound remained within a narrow range against the New Zealand Dollar after making substantial gains earlier in the week.

The ‘Kiwi’ gained favour amongst investors when the most recent dairy auction offered some good news for New Zealand farmers, with prices rising by 3.6%.

As dairy produce is New Zealand’s largest commodity, the NZD suffered significant losses when the value of the asset crumpled by around 50% in 2014.

However, many are optimistic that 2015 could be off to a good start. Industry expert Kyle Schrad commented: ‘It is too early to say this is the start of a sustained increase in prices. But to say it is sustainable in terms of having found a bit of a bottom, from which prices may rise, I think that’s a possibility.’

Latest New Zealand Dollar Exchange Rates Today

The Pound to New Zealand Dollar conversion rate is -0.64 pct lower at 1.94202 GBP/NZD.
The Euro to New Zealand Dollar exchange rate converts -0.77 per cent lower at 1 EUR is 1.52145 NZD.
The US Dollar to New Zealand Dollar exchange rate today is converting -0.46 per cent lower at 1.28549 USD/NZD.
The Swiss Franc to New Zealand Dollar conversion rate is -0.77 pct lower at 1.26689 CHF/NZD.
The Canadian Dollar to New Zealand Dollar exchange rate converts -0.34 per cent lower at 1 CAD is 1.08714 NZD.


Moreover, the New Zealand Dollar was offered some additional support earlier in the week when 7 trillion Yuan’s worth of infrastructure projects were fast tracked in China. As New Zealand’s largest trading partner, any positive Chinese developments aid the ‘Kiwi’s’ climb against other currency majors. However, economists are forecasting a fall in Chinese growth for the first time in 25 years—an event that could see the New Zealand Dollar slump. Economists predict that a housing market slump and action to try and rebalance the investment-dependent economy has hindered economic growth. Chinese statistics bureau official Zhao Qinghe stated: ‘The manufacturing industry faces relatively severe difficulties and pressure.’

Meanwhile, the UK saw New Car Registrations hit a 10-year high on Wednesday as 2.5 million cars took to the road. The December figure reached a healthy 8.7%. Industry expert Mike Hawes stated: ‘UK new car registrations returned to pre-recession levels in 2014, as pent-up demand from the recession years combined with confidence in the economy saw consumer demand for the latest models grow consistently and strongly.’ However, the recent glut in oil has caused a decrease in petrol prices; but as consumers become more environmentally conscious other non-petrol alternatives have become popular. Hawes continued: ‘The year was particularly strong for alternatively-fuelled vehicles as increased choice, coupled with a growing desire for reduced costs and greater efficiency, resulted in quadrupling of plug-in car registrations over 2013. With a variety of new plug-in models expected in 2015, this area of the market will continue to grow significantly.’

The Bank of England is scheduled to release its latest interest rate decision on Thursday which could see Pound movement occur. In the past, the central bank announcement has seen significant currency swings.

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