The Pound has advanced against the New Zealand Dollar today, but future gains are largely dependent on continued positive Brexit news.
GBP/NZD Rate Picks Up on Fresh Hopes for Irish Border Deal
Brexit has remained a dominant influence on the Pound today, although the latest GBP movement has been up, rather than down.
The latest source of GBP support has been news that an Irish border deal could be worked out in the near-term, which would solve one of the primary Brexit issues.
Talks notably failed earlier in the week, when Democratic Unionist Party (DUP) MPs rejected proposals for an open border between Ireland and Northern Ireland.
DUP officials later elaborated on their decision, stating that they had only seen the deal at the last minute.
The main worry was that this would leave Northern Ireland closer to the EU than the UK, potentially risking undue EU influence due to ‘aggression’ from neighbouring Ireland.
The GBP/NZD exchange rate has since risen, thanks to hopes that the Irish border proposal could be reworded.
Ideally, this would make it acceptable to the DUP and enable a Pound-boosting agreement from all parties involved.
New Zealand Dollar to Pound Rate Tumbles on Dovish Westpac Outlook
The New Zealand Dollar has fallen across the board on Thursday’s trading session, mainly on account of a stronger US Dollar.
Another strong negative influence has been a statement from Westpac bank about the economy, which has largely been gloomy.
Offering a future outlook and current summary, Westpac economics have stated;
‘The New Zealand economy is in for a big shake up over the next few years, with a new Government and some significant changes in economic policy on the cards.
Net migration has turned, the housing market has cooled, and construction activity is slowing.
Against this backdrop, it’s no surprise that businesses are feeling nervous. But what is surprising is just how far business confidence has dropped.
It’s not just confidence about the general economic environment that has declined.
Businesses are nervous about what’s happening to conditions, with large falls in sentiment across industries in recent months’.
Looking ahead, the New Zealand Dollar might be further influenced by a manufacturing sales reading, out overnight.
This is tipped to show a rise from 0.4% to 1.1% in the third quarter, which could start a small NZD/GBP rate recovery.
Recent Interbank GBP NZD Exchange Rates
At the time of writing, the Pound to New Zealand Dollar (GBP NZD) exchange rate was trading at 1.9568 and the New Zealand Dollar to Pound (NZD GBP) exchange rate was trading at 0.5101.
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