Pound (GBP) Exchange Rates Fail to Advance after Animosities Rise in House of Commons Debate
As GBP approached the end of the week, the Pound to New Zealand Dollar exchange rate continued to fluctuate around its record lows, as stronger risk-sentiment allowed even the weaker ‘Kiwi’ to advance.
As the day’s US data left investors temporarily uninterested with the US Dollar, GBP NZD was pushed back by another wave of investors looking for the higher-yields of risky currencies. As a result, GBP NZD looked to end the week well below opening levels.
While risk appetite has been strengthened by positive Chinese data on Friday morning the New Zealand Dollar has struggled to strongly capitalise on this.
Thus, with the mood towards the Pound somewhat stabilised ahead of the weekend the Pound to New Zealand Dollar exchange rate was able to recover from its recent all-time low.
Yesterday's session saw the GBP/NZD remained near its daily lows, as the ‘Kiwi’ Dollar was able to hold near its best levels.
As a result, GBP NZD drew closer to record-lows once more.
With the Canadian Dollar and Australian Dollars both facing rebound from their recent rallies, the high-yielding New Zealand Dollar could be set to enjoy more of the market’s risk appetite towards the end of the weekreversed her stance and allowed a ‘Brexit’ debate to take place in the afternoon.
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The debate itself was largely acrimonious, however, with MPs lining up to criticise the Government for its apparent lack of forward-thinking when it came to ‘Brexit’ negotiations.
Latest Pound/New Zealand Dollar Exchange Rates
Pound New Zealand Dollar Predictions: GBP Weakness Likely to Continue after UK Construction Stats Tomorrow
The next movement for the Pound could be positive, though given recent investor pessimism, even positive data may be unable to trigger a proper Sterling uptrend.
Incoming data before the end of the week will consist of tomorrow morning’s annual August construction output figure, which is set to shift from -1.5% to -1.1%.
Further adding to the negative situation, next Monday will be devoid of high-impact UK data, meaning that investors will be left to mull over the latest ‘Brexit’ news, potentially dragging the Pound down further still.
New Zealand Dollar in High Demand after Business PMI Climbs
The New Zealand Dollar has managed to hit an over-10 year high against the Pound at 0.58 recently, thanks to both the massive deterioration of the Pound and support offered on the domestic front in New Zealand.
This support has come from the Business NZ PMI for September, which has climbed from 55.2 points to 57.7, a step above the forecast 55.6 figure for the month.
Elsewhere, food inflation has only grown by 0.1%, instead of the 0.5% figure that had been previously predicted.
New Zealand Dollar Outlook: Inflation Rate Decline Forecast Next Week
Data out of New Zealand is set to be fairly limited in the near-term, meaning that the ‘Kiwi’ is more likely to be shifted by outside influences in the future.
As it stands, the coming Monday’s Q3 inflation rate results are expected to show a drop on both the quarter and the year from 0.4% to 0.3%.
Also out next week will be Tuesday’s global dairy trade index, as well as Thursday’s visitor arrivals result on the year for September.
New Zealand Dollar Focus: ANZ Chief Economist Holds Optimism for NZ Economic Future
Another piece of domestic data that recently benefitted the New Zealand Dollar was the ANZ consumer confidence index for October, which rose from 121 to 122.9.
Commenting on the result was ANZ Chief Economist Cameron Bagrie, who said that;
‘The economy is performing well, jobs are getting easier to find, and consumers are feeling pretty good. Strong consumer confidence will underpin spending over coming months’.
The pound conversion rate (against pound) is quoted at 1 GBP/GBP.
The GBP to EUR exchange rate converts at 1.172 today.
At time of writing the pound to us dollar exchange rate is quoted at 1.243.