Today's New Zealand Dollar Exchange Rate Outlook and Forex Forecasts vs the Pound Sterling, Euro and Australian Dollar FX Rates
Weekend Update: The New Zealand Dollar exchange rate recorded gains against the Euro and Australian Dollar while remaining in a tight range against the Pound on Friday when it was revealed that the New Zealand governments operating deficit was smaller than expected.
Earlier: The Pound Sterling was forecast to fluctuate on the release of Retail Sales stats while the Euro was likely to remain soft after it was announced the ECB would be purchasing sovereign debt from March onwards.
The New Zealand Dollar fell to a two-and-a-half-year low as both the Australian and New Zealand Dollars softened on account of speculation.
Investors believe that Trans Tasman central banks could be headed for a rate cut after the Bank of Canada surprise announcement this week.
The BOC shaved 0.25% off its interest rate as lower oil prices and inflation figures saw the nation’s currency depreciate and growth struggle.
Industry expert Raiko Shareef commented: ‘The Bank of Canada was obviously quite shocking, and puts the notion in people’s minds that we may be about to witness the capitulation on the part of other central banks towards an easing bias. The pressure is on the Kiwi and Aussie.
The New Zealand Dollar was also trending lower after consumer prices slipped in the oceanic nation from 1.0% to 0.8%. Economists had expected a gentler fall to 0.9% and therefore the ‘Kiwi’ was susceptible to losses.
A quick foreign exchange market summary before we bring you the rest of the report:
On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
FX markets see the pound vs pound exchange rate converting at 1.
FX markets see the pound vs euro exchange rate converting at 1.168.
FX markets see the pound vs australian dollar exchange rate converting at 1.941.
Please note: the FX rates above, updated 19th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
Euro to NZ Dollar Exchange Rate Forecast
Meanwhile, the New Zealand Dollar managed to record gains against the Euro after the European Central Bank stated it planned to embark on a €60 bn per month bond buying program.
The implementation of more aggressive monetary policy is expected to help revive growth in the Eurozone after it recently entered a period of disinflation.
EUR/NZD Forecast:
Friday’s Markit releases could help the Euro gain some stability against other currency majors if favourable.
France, Germany and the Eurozone will be under close scrutiny with the release of Services, Manufacturing and Composite Purchasing Managers Indexes which could offer the Euro significant movement.
Pound to New Zealand Dollar Forecast
After a disappointing week for the Pound, the British currency could be in for some additional losses when UK Retail Sales stats are published on Friday.
Economists expect UK Retail Sales dropped from 6.9% to 3.4% on the year. Bank of England Governor Mark Carney is also expected to speak during Friday’s trading and could be another factor to pressure the Pound lower if any dovish comments are made.
Australian Dollar to New Zealand Dollar Forecast
Thursday saw Australia’s Consumer Inflation Expectation fall from 3.4% to 3.2% in January—a development that offered the Aus Dollar (AUD) exchange rate little by way of support