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Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises as ‘MPs for a Deal’ Sparks Fresh Brexit Optimism

September 10, 2019 - Written by John Cameron

Fresh Brexit Optimism Buoys Pound New Zealand Dollar (GBP/NZD) Exchange Rate

The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate edged up and the pairing is currently trading at an inter-bank rate of NZ$1.9252.

Sterling was provided with a fresh bout of Brexit optimism as MPs launched a new group in order to secure a Brexit deal.

The group of lawmakers called ‘MPs for a deal’ aims to persuade parliament to pass an agreement based on previous Prime Minister Theresa May’s withdrawal agreement.

Labour MP, Caroline Flint said the group would use ‘the hours, the days, the weeks left’ before the deadline to show the ‘sizeable voice’ in parliament for a deal.

However, the probability of a no-deal Brexit remains a concern of many traders as the Prime Minister reiterated that he would take the UK out of the EU by the October deadline.

Commenting on this, Rabobank senior currency strategist, Jane Foley said:

‘The market is extremely cautious because of Johnson’s stance. Anxiety is hanging over markets.’

Sterling (GBP) Rises as Workers Receive Largest Pay Rise in 11 Years

The Pound rose as data from the Office for National Statistics (ONS) revealed British workers received their largest pay rise in more than 11 years.

Added to this, unemployment dipped back down to 3.8% with a total of 32.78 million people in employment in the UK.

Thanks to strong wage growth and the joint-highest rate of employment on record, Sterling rose against the New Zealand Dollar.

However, this morning’s data revealed there was a cut back in hiring in the three months leading to July.

31,000 jobs were added to the economy compared to the 115,000 positions added in the quarter to June.

New Zealand Dollar (NZD) Falls despite Electronic Card Spending Hitting Seven-Month High

The ‘Kiwi’ remained muted against the Pound despite data revealing retail card spending bounced back in August.

Electronic card spending rose by a higher-than-forecast 1.1% after spending was left flat for five months.

Meanwhile, year-on-year sales jumped by 2.8%.

Despite August’s monthly rise being this was the highest monthly increase since January, the New Zealand Dollar slipped against the Pound.

Pound New Zealand Dollar Outlook: Will NZ Visitor Arrivals Buoy NZD?

Looking ahead to this evening, the New Zealand Dollar (NZD) is likely to rebound against the Pound (GBP) following the release of New Zealand’s visitor arrivals data.

If July’s annual visitor arrivals jump higher than expected, the ‘Kiwi’ could claw back this afternoon's losses.

Meanwhile, Brexit is likely to remain the main catalyst for movement in Pound exchange rates.

The Pound New Zealand Dollar (GBP/NZD) exchange rate is likely to slide if reports reveal the Prime Minister continues to focus on ways to go around the new Brexit delay law.

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