July 28, 2021 - Written by John Cameron
STORY LINK GBP/NZD Forecast: Pound New Zealand Dollar Exchange Rate Steady on UK Coronavirus Recovery Hopes
The Pound New Zealand Dollar (GBP/NZD) exchange rate has edged higher this morning as NZD exchange rates remain on the back foot against an ongoing surge in global coronavirus cases.
At the time of writing the GBP/NZD pairing are trading around the NZ$1.9978 level as the UK enjoys a 7 day fall in UK coronavirus cases.
Pound (GBP) Steady on Positive UK Coronavirus Developments
The Pound has remained steady against the New Zealand Dollar this morning following a sustained fall in daily coronavirus cases.
Prime Minister Boris Johnson urged caution whilst speaking to UK press earlier this morning:
‘We’ve seen some encouraging recent data, there’s no question about that, but it is far, far too early to draw any general conclusions.’
‘The most important thing is for people to recognise that the current situation still calls for a lot of caution and for people just to remember that the virus is still out there, that a lot of people have got it, it still presents a significant risk.’
However, Mike Tildesley, an infectious disease modeller at the University of Warwick noted that the fall could be attributed to less coronavirus testing:
‘Because schools in England closed last week, we haven’t got secondary school pupils doing regular lateral flow testing and so we’re not necessarily detecting as many cases in younger people.’
‘It’s also been suggested by some that, possibly, because of a high number of cases, because of the summer holidays approaching, people might be less willing to ‘step up’ to testing when they have symptoms.’
New Zealand Dollar (NZD) Weakens as Markets Await Federal Reserve Decision
The New Zealand Dollar has weakened against many of the majors this morning as a prevailing risk-off mood paired with markets bracing for the Federal Reserve’s latest interest rate decision has dragged down the appeal of the ‘Kiwi’.
The New Zealand government has recently announced that it has paused its quarantine-free travel corridor with Australia for at least two months.
Although New Zealand has been relatively untouched by coronavirus, the country has felt the effects of the pandemic throughout with closed borders protecting its citizens.
As markets prepare for the Federal Reserve interest rate decision the New Zealand Dollar has been unable to cling onto any strength.
GBP/NZD Exchange Rate Outlook: ANZ Business Confidence in Focus
For New Zealand Dollar traders, overnight will see the release of the latest ANZ business confidence index from New Zealand.
Business confidence is forecast to have increased to 1.2 in New Zealand, a figure which could provide the ‘Kiwi’ with much needed support.
A lack of notable economic data from the UK will instead see investors keeping an eye on any further domestic coronavirus developments to drive movement in GBP exchange rates.
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TAGS: Pound New Zealand Dollar Forecasts