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Pound Sterling New Zealand Dollar (GBP/NZD) Exchange Rate Slips as NZ Monthly Exports Rise to Record High

April 26, 2019 - Written by John Cameron

Pound New Zealand Dollar (GBP/NZD) Exchange Rate Falls as New Zealand Exports Hits New Monthly Record



The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate fell and the pairing is currently trading at an inter-bank rate of NZ$1.9413.

Data released during the Asian session revealed that New Zealand earned more from exports in March than any other month.

According to Stats NZ, the value of total goods exported rose by 19% ($899 million) to reach $5.7 billion.

This was a new record for the largest monthly rise, beating the previous record for monthly exports from December 2017.

This recent strength of Chinese demand for products likely buoyed the risk-sensitive ‘Kiwi’ as demand for goods such as dairy, meat and wood remained strong.

Sterling (GBP) Falls despite UK Mortgage Approvals Jumping to Nine-Month High



Meanwhile, data released on Friday morning revealed that UK mortgage approvals jumped to a nine-month high.

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UK Finance revealed that 39,980 loans for house purchases were approved in March.

It was also reported that consumer growth picked up in March to an annual rate of 4.1% from 3.5% in the previous month making this the highest rise since June 2018.

However, it is likely that the warnings from the Royal Bank of Scotland (RBS) that Brexit uncertainty is hurting demand overshadowed this.

Pound (GBP) Slides as Cross-Party Talks Make Little Progress



The Pound was likely weighed down by reports suggesting that the government’s talks with Labour have made little progress.

Labour have accused the Conservatives of refusing to make compromises on their Brexit ‘red lines’.

However, Theresa May’s allies are accusing the Labour party of deliberately stringing out discussions to force the Conservatives to take part in the European elections.

With cross-party talks stalling, it looks like a deal will not be passed before 23 May leaving the UK to take part in elections.

The continued Brexit uncertainty likely caused the Pound to fall against the New Zealand Dollar on Friday.

Pound New Zealand Dollar Outlook: Will the GBP/NZD Exchange Rate Fall as US-China Trade Talks Continue?



Looking ahead to the start of next week the New Zealand Dollar (NZD) could rise against the Pound (GBP) as face-to-face US-China trade talks continue.

If reports suggest that trade discussions are progressing well, the risk-sensitive New Zealand Dollar could receive an upswing of support.

However, on Tuesday the ‘Kiwi’ could slide following the release of the ANZ business confidence figure.

If April’s business confidence contracts further than forecast, the Pound New Zealand Dollar (GBP/NZD) exchange rate could rise.




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