Renewed Gains Forecast for New Zealand Dollar (NZD) vs Pound Sterling (GBP)

Modified: Thursday, 11 June 2015 10:11 BST - Written by John Cameron

STORY LINK Renewed Gains Forecast for New Zealand Dollar (NZD) vs Pound Sterling (GBP)

Conciliatory noises from Germany were not enough to save the euro (currency:EUR) from further losses against the other sixteen most actively traded global currencies during today’s trading session.

German Chancellor Angela Merkel told assembled journalists in Brussels, where eurozone policymakers are convening in an effort to break Greece’s debt deadlock, that, ‘where there’s a will, there’s a way’, and confirmed that, ‘the goal is to keep Greece in the euro area’.

However, Merkel’s soothing words were not enough to stop the Pound Sterling euro exchange rate from tracking Northwards to as high as 1.3756 on the day. The pair retraced a little during the middle part of today’s New York session, but still appears likely to end the day firmly established in the 1.3700s. Price action suggests that investors are not as go-ahead regarding Greece’s chances of agreeing a debt deal as the German leader.

Elsewhere, this morning’s UK data proved to be a mixed bag, with the April Industrial Production figures printing at a better than anticipated annualised 1.2%, while the latest Manufacturing Production data disappointed, printing at 0.2% versus an expected 0.4%. On the whole, market participants chose to adopt a ‘glass half full’ approach to the latest British ecostats and the Pound Sterling was one of the better performing global tenders on the day.

Looking ahead, the next tier one risk event of note comes tonight in the guise of the Reserve Bank of New Zealand’s latest monetary policy announcement. The New Zealand Dollar (currency:NZD) has been floundering in the markets during recent weeks, with the GBP NZD exchange rate settling above the 2.1500 threshold during recent sessions. However, analysts forecast that a decision by the RBNZ to maintain interest rates at their current 3.50% could trigger renewed support for the Kiwi.

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