Sterling (GBP) exchange rates tanked across the board on Friday, with the GBP to NZD spot rate shaving a significant amount of its value. Where next for sterling in relation to the New Zealand dollar?
The British pound has dropped off in a major way against the NZ dollar and all other peers today.
This radical shift has been brought about by the outcome of the EU Referendum; while the ‘Remain’ campaign had been expected to win, ‘Leave’ instead took victory.
The Pound’s losses indicate just how uncertain the marketplace is, as they have persisted throughout the day.
Despite a complete absence of domestic data to provoke volatility, the New Zealand Dollar advanced versus most of its major peers.
The appreciation is in response to improved risk-appetite after British bookmakers are overwhelmingly in favour of a ‘Remain’ victory in the EU referendum.
Should the UK vote Brexit, however, NZD exchange rates may dive as traders flock to safe-haven assets.
Below are the latest live FX rates:
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.
The GBP to EUR exchange rate converts at 1.16 today.
The live inter-bank GBP-USD spot rate is quoted as 1.237 today.
The GBP to AUD exchange rate converts at 1.928 today.
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.
EU Referendum Polling Day: Bookies Back ‘Remain’
Compared with recent weeks, Sterling volatility has been comparatively subdued as traders become increasingly confident that the UK will vote against Brexit.
Investors have already priced-in expectations of a ‘Remain’ victory, with Bookmakers stating that the majority of bets have been for ‘Remain’.
Opinion polls have shown that the vote will be too close to call, however. This has caused the Pound to fall from intraday highs as the threat of Brexit remains.
NZD Exchange Rates Climb, Forecast to Extend Gains on ‘Remain’ Victory
As a risk-correlated, high-yielding asset, the New Zealand Dollar advanced versus most of its peers amid optimism that the UK will vote to maintain the status quo.
Should the UK indeed vote to remain in the EU, the ‘Kiwi’ (NZD) will likely extend gains as traders flock to high-yielding assets.
Also supportive of demand for the ‘Kiwi’ has been significantly reduced odds of a near-term Federal Reserve rate hike after Chairwoman Janet Yellen delivered a succession of dovish speeches.