The GBP NZD exchange rate came close to hitting the all-time low seen a couple of weeks ago as Prime Minister Theresa May committed to triggering article 50 of the Lisbon Treaty by the end of March 2017 over the weekend.
Perceived ‘Hard Brexit’ Causes Pound (GBP) to Nosedive
The statement from Theresa May over the timetable to leave the European Union has renewed the focus on whether the UK will pursue a ‘hard Brexit’ in negations, and is causing market sentiment in Pound Sterling (GBP) exchange rates to sink.
A ‘Hard Brexit’ would see the UK government push for stronger controls over immigration ahead of retaining access to the single market, the uncertainly of which has investors worried about the UK’s ability to trade post-‘Brexit’.
The Pound to New Zealand Dollar (GBP NZD) currency pair is likely to see a lot of fluctuation in the near future as any ‘Brexit’ comments could cause Sterling to drop further.
GBP NZD Movement Forecast on New Zealand Dairy Auction
So what news is likely to impact the Pound New Zealand Dollar exchange rate in the week ahead?
Tuesday will see the only major data for the week from New Zealand, with the results from the Dairy Auction due to be released.
An increase in prices last month saw the GBP NZD exchange rate drop to an all-time low, and with the Pound hovering dangerously close to that point already we could see a new low if the results are positive, conversely should the prices fall Sterling might be able to mount a recovery against the ‘Kiwi’.
The UK will be hoping for some positive data from the swathe of PMI data releases this week. This will be followed by the release of Manufacturing Production and Trade Balance reports on Friday. Upbeat results will be necessary in order for the Pound to gain on the New Zealand Dollar.
Current GBP EUR Exchange Rates
At the time of writing the GBP/NZD exchange rate was trending around 1.7693 and the NZD/GBP exchange rate was trending around 0.5654
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