Gains Forecast for Pound Sterling New Zealand Dollar Exchange Rate GBP NZD

Modified: Wednesday, 22 July 2015 17:50 BST - Written by Frank Davies

STORY LINK Gains Forecast for Pound Sterling New Zealand Dollar Exchange Rate GBP NZD

Beleaguered Greek Prime Minister Alexis Tsipras faces another tricky vote in Greece’s parliament in order to win the right to commence talks with the Brussels Group regarding a third bailout for his debt-addled nation. Tsipras is facing a rebellion from his own MPs in his nation’s parliament; when the last vote on austerity measures took place earlier this month, almost a quarter of Syriza’s MPs disobeyed the leadership and took a stance against the tough austerity measures which were proposed.

With the debate on a second round of tax increases and spending cuts starting today, any increase in the numbers voting against austerity could see the Greek Prime Minister forced out. The prospect of such an outcome has seen the Pound Sterling euro exchange rate climb back up towards the 7 ½ year high of 1.4417 which it reached on July 17th. Analysts forecast that the suggestion that further Syriza rebels are emerging will send GBP EUR through to a fresh 7 ½ year high.

Meanwhile, on the other side of the Atlantic, the latest US housing sector market data, published earlier today, provided further evidence of a recovery in America’s real economy. The June Existing Home Sales figures were particularly encouraging, showing a month on month increase of 3.2% when 0.9% had been anticipated. Meanwhile, the latest weekly US Mortgage Approval data showed at 0.1% versus the previous showing of -1.9%, suggesting that the retail banking sector Stateside is continuing to grow more confident in lending against properties.

Looking ahead, tonight’s Reserve Bank of New Zealand (RBNZ) monetary policy announcement is almost certain to prove market-moving. Analysts are anticipating a quarter of a percentage point cut from the Kiwi central bank; such a result would be likely to send the Pound Sterling Kiwi exchange rate sharply higher as the New Zealand unit’s relative yield advantage is further eroded.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts