With nothing in terms of UK domestic data to influence proceedings; Sterling has firmed up against the struggling New Zealand Dollar. A less-than-desirable Trade Balance figure has seen the ‘Kiwi’ (NZD) fall across the board.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 1.9886.
Last week was disappointing for both the UK and New Zealand and both fell to record-lows versus their major peers.
The Pound Sterling was hit hard last week by a combination of poor UK data and even poorer Eurozone data. The decline has largely continued over the weekend with nothing by way of domestic data publications to buck the trend.
Similarly the New Zealand Dollar’s week was less-than-impressive as waning consumer confidence weighed heavily. This came in conjunction with a dramatic fall in dairy prices which has had a significant impact on the commodity driven economy, and therefore the strength of the ‘Kiwi’.
Monday saw a continuation of the bad news for New Zealand as Trade Balance data made for difficult reading. The New Zealand Trade Balance showed serious retraction from the surplus 242 million figure posted previously. Having been forecast to drop significantly to -475 million, which would have been unwelcome in and of itself, the actual figure showed the trade balance to have plunged to -692 million. Both exports and imports data also failed to meet with forecasts; compounding the ‘Kiwi’ problems.
Tuesday has seen very little by way of UK domestic data publications, and nothing in terms of New Zealand domestic data releases.
UK BBA Loans for House Purchase was forecast to rise from the previous figure of 43180 to 44065, but the actual figure declined to 42792. However, despite the negative result, the data holds very little weighting both economically and as a market mover.
The lack of domestic data pertaining to the New Zealand Dollar is likely to see the continued downward trend. Any movement is likely to be dictated by foreign currency changes.
The Pound Sterling to New Zealand Dollar exchange rate has hit a low today of 1.9861.
Forecast for the Pound to New Zealand Dollar Exchange Rate
The UK domestic data docket is particularly sparse this week. The most significant publication will be the Consumer Confidence Survey due for release on Friday.
Similarly the economic calendar is very quiet for New Zealand this week, with nothing of huge weighting in terms of market movement.
The Pound Sterling to New Zealand Dollar exchange rate has hit a high today of 1.9934.
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