July 1, 2015 - Written by Ben Hughes
STORY LINK FX Today: Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Predicted to Edge Higher on UK Financial Stability Report
Strong UK Construction PMI could Push GBP/NZD Exchange Rate Beyond Exchange Best Rate for Five Years
The Pound Sterling to New Zealand Dollar (GBP/NZD) declined on Wednesday morning as investors responded to disappointing UK manufacturing data. However, after US reports (including manufacturing and employment figures) impressed and upped the odds of a 2015 US interest rate increase, the Pound recouped losses as the day progressed.
Today's Forex Outlook: Pound Sterling (GBP) Exchange Rate Forecast to Edge Higher against the ‘Kiwi’ (NZD) despite Slow British Manufacturing Growth
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate strengthened by around 0.38% on Wednesday afternoon.
The Pound fluctuated significantly against its peers during Wednesday’s European session. An initial depreciation can be linked to lower-than-forecast manufacturing output. The losses were recovered somewhat, however, after the UK Financial Stability report showed that the Bank of England (BoE) were confident that the UK could resist any fallout from a Grexit.
The New Zealand Dollar, meanwhile, managed to hold gains versus its peers in the early stages of the European session despite significantly dampened market sentiment. The gains were relatively short-lived, however, after positive US data supports speculation of a sooner-than-anticipated Federal Reserve interest rate hike.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3206.
After British manufacturing output failed to meet with expected growth, the Pound slumped versus its rivals. June’s seasonally-adjusted Manufacturing PMI came in at 51.4; missing the market consensus of an increase from 51.9 to 52.5. The slow pace of manufacturing growth has been linked to geopolitical tension in Europe seeing cooling demand for British exports.
The Pound managed to recover most of its losses later during Wednesday’s European session, however, thanks to positive comments from Bank of England Governor Mark Carney following the publication of the Financial Stability report. Carney stated that whilst a Grexit would have a significant impact on the global market as a whole, the UK will be little affected by the fallout.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low of 2.3048 today.
New Zealand Dollar (NZD) Exchange Rate Forecast to Decline against the British Asset (GBP) on US Dollar (USD) Strength
Although in the early stages of Wednesday’s European session the ‘Kiwi’ showed resilience against damp market sentiment, the Oceanic currency declined as the session progressed. This is mostly the result of a stronger US Dollar after domestic data pleased rate hawks. US Manufacturing, Construction Spending and Employment Change all bettered the respective median market forecasts.
The ‘Kiwi’ also saw losses as a result of speculation that the Reserve Bank of New Zealand (RBNZ) will cut the cash rate in the foreseeable future now that Auckland housing prices are gradually reducing.
Currency Predictions: Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Hold Gains ahead of Australasian Session
Given the absence of further domestic data publications to provoke volatility, and with damp market sentiment and US Dollar strength weighing on ‘Kiwi’ demand, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is likely to hold gains ahead of Thursday’s Australasian session which will see New Zealand House Price and Commodity Prices data published.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate climbed to a high of 2.3216 today.
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: New Zealand Dollar Forecasts Pound New Zealand Dollar Forecasts Poun Forecasts