Home » NZD » New Zealand Dollar to Pound Sterling (NZD/GBP) Exchange Rate Drops after CPI Reports

New Zealand Dollar to Pound Sterling (NZD/GBP) Exchange Rate Drops after CPI Reports

Pound to New Zealand Dollar chart

The NZD to GBP exchange rate softened on Tuesday as investors grew jittery ahead of Federal Reserve Chairman Janet Yellen’s testimony to the US Congress this afternoon.

Against the US Dollar the ‘Kiwi’ was holding around the 88 cents range for a fourth consecutive day. Investors will be watching for any signs that the Fed chairman was considering raising interest rates, a move that would boost the US Dollar at the expense of the New Zealand currency.

Yellen previously said that the Fed isn’t in any rush to raise interest rates from near 0% but with the US jobs market (a prerequisite for a rate hike) on the up an rate rise could be on the cards, albeit a very slim chance.

US payrolls rose by a higher-than-forecast 288,000 in June and the USA’s unemployment rate fell to 6.1%, the lowest level in six years and a level not expected by the Fed.


Example Currency Transfer

‘Yellen might be less dovish, which would push up the US Dollar and weaken the ‘Kiwi’. The employment numbers have been better. Fed watchers will be listening for a slight change of tone. Yellen is likely to be cautious, saying things are on the mend but the Fed has to keep policy accommodative,’ said Imre Speizer, senior market strategist at Westpac Banking Corp.

The Pound could make further gains against the ‘Kiwi’ on Tuesday if the latest inflation data for the UK comes in positively.

Against the Euro the New Zealand Dollar could recover some ground if the latest ZEW Sentiment data for Germany and the wider Eurozone disappoints.

UPDATED 09:30 16 July, 2014

Conflicting CPI Reports Cause NZD/GBP Movement

On Wednesday the New Zealand Dollar to Pound Sterling exchange rate extended declines, falling by a further 0.35%, as New Zealand published its domestic Consumer Price Index.

The UK’s inflation report surpassed expectations on Tuesday, driving the Pound higher, but New Zealand’s CPI fell short of forecasts.

Consumer Prices in the South Pacific nation were shown to have increased by 0.3% in the second quarter on a quarter-on-quarter basis. A gain of 0.4% had been expected.

Prices were up 1.6% on the year, less than the annual increase of 1.8% anticipated.

Today’s UK employment data could cause further movement in the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate.

New Zealand Dollar (NZD) Exchange Rates

Currency Currency Rate
New Zealand Dollar US Dollar 0.8788
New Zealand Dollar Pound Sterling 0.5151
New Zealand Dollar Euro 0.6463
New Zealand Dollar Australian Dollar 0.9373
Euro New Zealand Dollar 1.5481
US Dollar New Zealand Dollar 1.1378
Australian Dollar New Zealand Dollar 1.0656
Pound Sterling New Zealand Dollar 1.9406
As of 09:30 am GMT

Comments are closed.