The Pound to New Zealand Dollar is holding steady on the exchange rate markets today after yesterday's losses. GBP/NZD lost 0.62 pct as Sterling exchange rates plunged across the forex markets.
The British asset was dealt a blow when the Industrial Production and Manfcaturing Production data both came in well under forecast.
Let's take a look at where the NZD stands as of 11:00 GMT 07/08/2014:
- The Pound to New Zealand Dollar exchange rate is holding steady at 1.98938 GBP/NZD.
- The Euro to New Zealand Dollar exchange rate is marginally higher today at 1.58047 EUR/NZD.
- The Australian Dollar to New Zealand Dollar is 0.74% per cent lower on the day at 1.09499 AUD/NZDrecommended FX provider to lock in the best exchange rates.
With a poor start to trading earlier in the week, the Pound soon found support following a positive UK construction report for July.
A monthly gauge of construction activity released by Markit and the Chartered Institute of Purchasing and Supply showed the sector posted a 62.4 reading in July which was marginally above the 62.6 reading for June.
"We're seeing the pound claw back some of its losses," said Omer Esiner, chief market analyst at the currency brokerage Commonwealth Foreign Exchange Inc. "The U.K. construction report was essentially the only market-moving data release on an otherwise quiet day; it provided investors an opportunity to book some profits on the pound's decline over the last few weeks."
Following the release Sterling gained across the board against its major counterparts with The Pound to New Zealand Dollar posting some of the biggest gains.
The Pound to New Zealand Dollar rate rejected support at 1.9740 to reach a daily high of 1.9815 following the release and currently trades below the all import 2.00 psychological barrier in afternoon trading.
Today the Pound to New Zealand Dollar has posted the biggest gains once again, with the Pound up +0.63% from this morning’s opening, gaining from a low of 1.9749 to currently trade at 1.9915. The next short term resistance for the GBP/NZD pair will be the last major high at 1.9968. IF this level gets broken then there is a good chance of breaking 2.00.
Looking elsewhere, gains were also seen against the South African Rand which is also heavily correlated to both commodities and risk, similar to the New Zealand Dollar.
Whilst the Pound to South African Rand exchange rate was trending about 0.35% higher in early morning trade today, this afternoon the Pound to Rand exchange rate has gained from a low of 17.8630 to reach a high of 18.1460, up +1% on the day.
The Pound to South African Rand still remains one of the most attractive buys in the market at present, with Sterling still holding above the 18.00 level which is one of the highest levels seen against the Rand. The last major high for the GBP/ZAR, which is in fact the all time high, still remains at 18.8260 which now acts as a major resistance level.
Over the next 24 hours we should continue to see volatility across the board. Tomorrow morning we have the release of UK Industrial production and UK Manufacturing production for July. This is considered a key indicator when looking at growth and will be closely watched by analyst’s and market traders alike. Tonight the Halifax house price data is set to headline the economic calendar with Thursday proving to be a significant day for the New Zealand Dollar.