Pound New Zealand Dollar (GBP/NZD) Exchange Rate Sinks as NZ Credit Card Spending Increases

June 24, 2019 - Written by John Cameron

STORY LINK Pound New Zealand Dollar (GBP/NZD) Exchange Rate Sinks as NZ Credit Card Spending Increases

GBP/NZD Exchange Rate Fell as NZ Traders Brace for Trade Balance Figures

The Pound New Zealand Dollar (GBP/NZD) exchange rate fell today and is currently trading around NZ$1.9269 on the interbank market.

The New Zealand Dollar (NZD) rose against the Pound (GBP) following the release of the annual NZ credit card spending figures for May, which rose above consensus 5.4% to 6.6%.

NZD traders will, however, be awaiting the publication of the New Zealand trade balance figures for the yearly May later on this evening, which are expected to improve against the previous month at $-5.325bn.

New Zealand Dollar traders, however, have been buoyed today on renewed hopes that the US and China could seal a trade deal as early as this week, with Chinese President Xi Jinping and his US counterpart, Donald Trump, due to meet in Osaka this week.

Chinese Vice-Minister of Commerce, Wang Shouwen, said:

‘We should meet each other halfway, which means that both sides will need to compromise and make concessions, and not just one side.’

This has buoyed market sentiment in the risk-averse New Zealand Dollar, with China being New Zealand’s closest trading partner.

GBP/NZD Exchange Rate Decreases as No-Deal Brexit Fears Rise

The Pound fell against many of its competitors this morning, due to a lack of UK economic data releases.

Political developments have remained in focus instead, with the Tory leadership race heating up between the two remaining candidates, former London Mayor Boris Johnson and Foreign Secretary Jeremy Hunt.

Mr Hunt commented on Boris Johnson’s refusal to go onto TV debates, saying:

‘Frankly, the Conservative Party will start to feel cheated of having a proper leadership campaign if the frontrunner isn't prepared to subject himself to the scrutiny of TV debates. There's only two weeks now before postal ballots arrive, and we owe the Conservative Party, we owe the country, a proper contest.’

Brexit is also remaining in the spotlight, with increasing speculation that a ‘Tory coup’ could emerge to prevent a no-deal emerging between the UK and the EU on 31 October.

Defence Minister Tobias Ellwood, however, has eased no-deal fears, saying:

‘I think a dozen or so members of Parliament would be on our side, would be voting against supporting a no deal, and that would include ministers as well as backbenchers.’

GBP/NZD Outlook: US-China Trade Talks in Spotlight

Sterling traders will be looking ahead to tomorrow’s UK CBI Distributive Trades Survey figures for June.

New Zealand Dollar investors, however, will be looking ahead to the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday, which is expected to hold at 1.5%.

Any bullish comments during the RBNZ’s rate statement could further boost the ‘Kiwi’.

The Pound New Zealand Dollar (GBP/NZD) exchange rate will likely be dictated by global political developments this week, with the US-China trade talks, which are due to take place later this week, remaining in focus.

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TAGS: New Zealand Dollar Forecasts Pound New Zealand Dollar Forecasts