GBP/NZD Exchange rate Steady on Johnson Comments
The Pound New Zealand Dollar (GBP/NZD) exchange rate is trading at a steady pace this morning, following comments from Boris Johnson on the chances of a no-deal Brexit.
At the time of writing the GBP/NZD exchange rate is virtually unchanged this morning leaving the pairing trading close to a four-month low at NZ$1.8985.
Pound (GBP) Stable as Johnson Confident No-Deal Brexit Will Be Avoided
The Pound (GBP) is holding its ground against the New Zealand Dollar (NZD) and the majority of its other peers this morning, following comments from Boris Johnson, suggesting the chances of a no-deal Brexit at a ‘million-to-one’
The frontrunner in the Conservative leadership election, said:
‘It is absolutely vital that we prepare for a no-deal Brexit if we are going to get a deal. But I don’t think that is where we are going to end up – I think it is a million-to-one against – but it is vital that we prepare.’
However, this would appear to conflict with comments made by Johnson earlier in the week in which he suggested that the UK would leave the EU in October no matter what, indicating the Tory leadership hopeful is more than willing to pursue a no-deal Brexit.
Cabinet Reshuffle Limits Demand for the New Zealand Dollar (NZD)
Meanwhile, after rocketing higher through the first half of the week on the back of improved risk sentiment, the New Zealand Dollar (NZD) appears to have paused for breath today following news that NZ PM Jacinda Ardern has reshuffled her cabinet.
In her first cabinet reshuffle since taking office in 2017, Ardern announced that she was replacing embattled housing minister, Phil Twyford with a team of senior officials in order to tackle New Zealand’s housing crisis.
Whilst the shuffle was relatively small in scope, it resulted in a modest upswing in political uncertainty, capping demand for the ‘Kiwi’.
GBP/NZD Exchange Rate Forecast: All Eyes on G20 Summit
Looking ahead, movement in the Pound New Zealand Dollar (GBP/NZD) exchange rate looks set to be dominated by trade headlines as Donald Trump meets with other world leaders at the G20 Summit in Japan.
The focus will be on whether Trump will be willing to play ball on trade with China and other powers, with the risk-sensitive ‘Kiwi’ likely to come under fire if the US President’s recent tweets threatening further tariffs on China, India and other countries cause some friction in talks.
Meanwhile, the Pound may find some support tomorrow morning from the final release of the UK’s first quarter GDP figures, which are expected to confirm the UK enjoyed robust growth at the start of 2019.