April 23, 2019 - Written by John Cameron
STORY LINK Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises as NZ Credit Card Spending Slips
GBP/NZD Exchange Rate Edges Higher as Geopolitical Tensions Weaken ‘Kiwi’
The Pound New Zealand Dollar (GBP/NZD) exchange rate is up by 0.3% today and is currently trading around NZ$1.9493.
The New Zealand Dollar (NZD) fell against the Pound (GBP) today following the publication of the NZ credit card spending figures for March, which slipped below expectation to 5.1% – against February’s 6.4%.
Many ‘Kiwi’ traders, however, are focusing on Chinese economic news, with fears that geopolitical tensions could once again heat up between the US and China.
Meanwhile, Nomura economists have warned that China’s recent uptick in economic strength may be temporary.
Analysts at Nomura said:
‘We believe the pace of monetary easing will slow, but it is still too early to withdraw monetary easing measures despite the limited monetary policy scope.’
The Pound, meanwhile, has recovered over the Easter holidays as MPs now head back to Westminster to reengage with Brexit discussions.
This has left some Sterling investors feeling optimistic that cross-party talks between the Conservatives and Labour could break the political deadlock, providing an alternative – and more likely to pass through Parliament – Brexit deal.
GBP/NZD Exchange Rate Rises as May’s Leadership is Criticised by MPs
Today saw no notable UK economic data releases, with many Sterling investors instead focusing on news that several MPs are calling for Prime Minister Theresa May to resign.
Nigel Evans, the leading backbencher and executive secretary of the 1922 Committee, said:
‘The only way we're going to break this impasse properly is if we have fresh leadership of the Conservative Party. If there was an announcement today by the prime minister then of course we could start the process straight away.’
News that MPs could vote on a key piece of legislation on Brexit next week has buoyed market confidence in Sterling today, with rising hopes that developments could lead to a successful deal between the EU and the UK.
May’s official spokesperson said:
‘Every day that parliament doesn’t ratify the withdrawal agreement, the harder it will be to avoid the European parliamentary elections, and the prime minister has made clear that she doesn’t believe it is in the country’s interests to take part in those elections.’
GBP/NZD Outlook: Sterling Could Rise on Emerging Brexit Consensus
Pound traders will be looking ahead to tomorrow’s printing of the UK’s public sector net borrowing figures for March, and with any signs of improvement, this could see Sterling edge higher.
Tomorrow, however, will see no New Zealand economic releases, with many ‘Kiwi’ traders focusing on geopolitical developments instead.
The Pound New Zealand (GBP/NZD) exchange rate will likely be determined by Brexit developments throughout this week, as Parliament must once again push forward with a consensus for its leaving of the EU.
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