UPDATE
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate edged lower by around -0.20% on Monday morning.
With the general election weighing on investor confidence amid political uncertainty, the Pound softened versus the majority of its most traded currency rivals. A complete absence of domestic data to curb the trend ought to see the Pound continue to decline.
The New Zealand Dollar, meanwhile, strengthened despite disappointing inflation data. The advance can be linked to additional stimulus measures employed by the People’s Bank of China (PBOC), which cut the reserve-requirement ratio in order to combat a recent succession of disappointing data results.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9412.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within a tight range at the close of Friday’s European session.
After British labour market data printed positively on Friday, the Pound strengthened versus many of its most traded currency competitors. The advance was somewhat slowed, however, with the forthcoming general election weighing on investor confidence amid political uncertainties.
At the close of last week, the ‘Kiwi’ (NZD) advanced versus most of its major peers after a weaker US Dollar spurred demand for high-yielding assets.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 1.9507 at the close of Friday’s European session.
Pound Sterling (GBP) Exchange Rate Forecast to Edge Lower on Political Uncertainty
With the forthcoming general election weighing on investor confidence, the Pound is likely to edge lower versus most of its major peers over the coming week. The election has been described as the most hotly contested in modern political history, with opinion polls showing varied results and no clear majority for any party. Fears that this will lead to a significant policy overhaul has stymied demand for the British asset.
With that being said, however, data will still be of significance as rate hawks speculate that the Bank of England (BoE) will look to raise rates after the general election has concluded. One particularly important publication will be minutes from the most recent Monetary Policy Committee (MPC) meeting.
For those invested in the Pound; Public Sector Net Borrowing, Retail Sales and Retail Sales including Auto will be of interest.
New Zealand Dollar (NZD) Forecast to Fluctuate on Market Sentiment
Although the ‘Kiwi’ is currently in hot demand, its position is very much dependent on the US Dollar. There is a high likelihood that the New Zealand Dollar will fluctuate over the course of the coming week, not least because it is sensitive to trader risk appetite which is damp amid geopolitical tensions in Greece.
The data will still be of significance, however, for those invested in the New Zealand Dollar. Of particular significance will be Sunday’s 1st quarter Consumer Price Index which came in at 0.8% previously.
In addition to the CPI; Net Migration and Credit Card Spending may be of interest. Commodity prices will alos be influential over ‘kiwi’ movement, with particular reference to dairy and oil prices. Additionally, China’s Manufacturing PMI and Conference Board China March Leading Economic Index will impact upon the New Zealand Dollar.
Trader risk-appetite will play a significant role in demand for the New Zealand Dollar.
The Pound sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 1.9419 and 1.9559 at the close of last week.
The Pound is unlikely to sustain any gains until the conclusion of the general election, but if the Euro continues to soften it will be positive for trade.
In addition to Greece provoking changes for the common currency, traders will also wish to focus on the effects of quantitative easing considering it is still in its infancy.
