Pound Sterling to New Zealand Dollar Exchange Rate is Forecast to Fall on Mixed UK Data
The Pound to New Zealand Dollar exchange rate softened by around 0.4 per cent on Tuesday afternoon.
Despite the fact that British economic data produced a mixed-bag of results, the Pound to NZ Dollar exchange rate strengthened during Tuesday’s European session.
The Pound Sterling’s appreciation was mostly fuelled by retail sales growth after September’s CBI Reported Sales data came in at 49; completely eclipsing the median market projection of just 28. Sterling gains were somewhat slowed, however, by lower-than-anticipated Net Consumer Credit in August.
The British Pound to New Zealand Dollar exchange rate is currently trending in the region of 2.3941.
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
Today finds the pound to pound spot exchange rate priced at 1.
The live inter-bank GBP-EUR spot rate is quoted as 1.162 today.
FX markets see the pound vs australian dollar exchange rate converting at 1.929.
FX markets see the pound vs us dollar exchange rate converting at 1.238.
NB: the forex rates mentioned above, revised as of 19th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
Despite the fact that market sentiment remains damp amid so much uncertainty regarding China’s economic stability and the full ramifications of the Volkswagen scandal, the New Zealand Dollar advanced versus its major peers.
The appreciation can be attributed to rising dairy prices after Fonterra increased its farm gate milk price (FGMP) forecast for the 2015/16 season. The Global Dairy Trade (GDT) Price Index has risen by 42.2% over the last three auctions which will likely translate into far better trade for New Zealand. In addition to raising the FGMP, Fonterra has lowered its production forecasts for 2015/16 which should help sustain the dairy price recovery.
The Pound Sterling to New Zealand Dollar exchange rate was trending within the range of 2.3893 to 2.4110 during Tuesday’s European session.
Euro to New Zealand Dollar Exchange Rate Predicted to Dive ahead of German Inflation Data
The Euro to New Zealand Dollar exchange rate dived by around -0.6% on Tuesday afternoon.
After having strengthened on Monday thanks to its negative correlation with the US Dollar, the shared currency edged lower versus many of its major peers on Tuesday. The depreciation can be attributed to speculation that the forthcoming German inflation report will print negatively. Given that earlier data showed that Germany’s import prices dropped beyond expectations, inflation in the currency bloc’s most influential nation is likely to remain close to negative territory.
Ongoing concerns regarding the Volkswagen scandal and the potential ramifications for the German economy are also weighing on demand for the common currency.
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.7699.
Although rising dairy prices are supporting the New Zealand Dollar, gains are unlikely to be sustained. This is due to ongoing weakness in China causing significantly damp market sentiment.
On Tuesday the Shanghai Composite Index ended the Asian session over 2% down, signalling ongoing difficulties for commodity-correlated assets.
National Australia Bank (NAB) has warned that the global environment has deteriorated for commodity assets, and potential policy easing from the Reserve Bank of New Zealand (RBNZ) will continue to weigh on sentiment.
The Euro to New Zealand Dollar exchange rate was trending within the range of 1.7629 to 1.7901 during Tuesday’s European session.
Australian Dollar to New Zealand Dollar Commercial Spot Rate Predicted to Decline on Market Sentiment
The Australian Dollar to New Zealand Dollar exchange rate softened by around -0.6% on Tuesday afternoon.
Although the drop in the Shanghai Composite Index had minimal impact on demand for the ‘Kiwi’ (NZD), the Australian Dollar dived in response. With mining commodities hardest hit by China’s economic woes, Australia’s trade has suffered considerably. This would account for the drop in weekly consumer confidence.
With base metal futures bleak, the ‘Aussie’ (AUD) is likely to continue trending lower during Tuesday’s European session.
The Australian Dollar to New Zealand Dollar exchange rate is currently trending in the region of 1.0995.
Looking ahead, New Zealand’s economic data docket is relatively sparse over the remainder of the week. Therefore, ‘Kiwi’ volatility will be subject to market sentiment and commodity prices.
In addition, data from China and the US could impact on the New Zealand Dollar. If US data prints positively, such as Consumer Confidence due for release later on Tuesday, the South Pacific asset could decline as the Federal Reserve is pressured into hiking the benchmark interest rate.
Thursday will see China’s Manufacturing PMI published. This will be hugely important for those invested in the Oceanic currency as a weak result would confirm that China’s economy is slowing which, in turn, would cause commodity prices and market sentiment to drop significantly.
The Australian Dollar to New Zealand Dollar exchange rate was trending within the range of 1.0983 to 1.1058 during Tuesday’s European session.
GBP-NZD Exchange Rate Update
Despite divergent results from domestic data publications, the New Zealand Dollar rallied versus its major peers on Wednesday morning. The appreciation can be linked to vastly improving dairy prices and signs that the Shanghai Composite Index is on the path to recovery. However, the recent ‘Kiwi’ (NZD) appreciation is unlikely to be welcomed by the Reserve Bank of New Zealand (RBNZ) after officials worked tirelessly to devalue the domestic asset.