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Pound to NZ Dollar: Best Foreign Exchange Rates Forecast for GBP-NZD Pairing

September 1, 2015 - Written by Tim Boyer

The Pound to New Zealand Dollar exchange rate cooled in the early stages of Wednesday’s European session. The depreciation is the result of improving market sentiment after China’s government propped up the equity market with state-backed capital. Additional ‘Kiwi’ (NZD) gains can be linked to mounting speculation that the Reserve Bank of Australia (RBA) will be forced into easing monetary policy after growth figures disappointed.

Chinese News Impacts Australian Dollar, New Zealand Dollar, Canadian Dollar Exchange Rate Trading

Monday’s Asian session brought yet another bout of nervousness from South East Asian equities traders; Shanghai’s benchmark SSE Composite Index, which acted as the trigger for last month’s global share market capitulation, was trading down by over 3% shortly after it re-opened for the week. The SSE eventually ended the day only marginally down from Friday’s closing level, but the test lower is likely to have increased fear levels amongst investors holding the high-yielding, export-dependent Australian Dollar (currency :AUD), New Zealand Dollar (currency : NZD) and Canadian Dollar (currency : CAD).

GBP Trends Close to Best Conversion Rates against AUD, NZD, AUD Today

The Pound Sterling (currency : GBP) recorded pronounced gains against all three during limited volume trading yesterday, with the GBP NZD exchange rate climbing by over 1.5% at one point during yesterday afternoon. The Pound Sterling Australian Dollar exchange rate gained a slightly lesser 1.0% on the day, while the Pound Loonie exchange rate moved up by over 0.5%.

US Federal Reserve Rate Hike Bets Predicted to Dictate Currency Market Exchange Rate Movement

Speculation over the likely timing of the US Federal Reserve’s next monetary policy move is forecast to provide a further drag on the relative value of the Commodity Dollars (AUD, NZD, CAD), in the short term. The hotly anticipated September meeting of the Fed’s policy committee takes place in a little over two weeks and there appears to be a pronounced diversion of opinions amongst the US central bank’s policymakers.

The annual Jackson Hole symposium on economic policy, which took place over the weekend, highlighted the schism amongst the Fed’s policymen; Saturday saw the Fed’s Vice-Chairman Stanley Fischer, issue a warning when he stated that his committee was eyeballing the state of China’s economy, ‘even more closely than usual’. His words were taken as a signal that the Fed may not be ready to consider an interest rate hike this month.

FX Predictions: GBP-NZD Conversion Rate Could Gain in the Short-Term

However, James Bullard, the President of the St. Louis Federal Reserve, took another angle, commenting to journalists that, he thinks that September’s view from the Fed, ‘will probably be that the outlook has not changed that much for the US economy, the market turbulence didn’t develop into something more dangerous, and so we can probably just go ahead with our existing strategy.’ If Bullard is correct and US interest rate ‘liftoff’ is close at hand, then many analysts forecast that the Pound Sterling New Zealand Dollar exchange rate could settle back above the 2.5000 GBP NZD threshold sooner rather than later.
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