GBP/NZD Exchange Rate Firms Following Smooth Launch for Conservative Manifesto
The Pound New Zealand Dollar (GBP/NZD) exchange rate edged higher at the start of this week as markets were relieved to see the launch of the Conservative election manifesto go off without a hitch.
At the time of writing the GBP/NZD exchange rate has climbed to around NZ$2.0079, up almost 0.3% from the session’s opening levels.
Tory’s Cautious Manifesto Buoys the Pound (GBP)
The Pound (GBP) opens this week’s session on some strong footing as markets react to the publication of Boris Johnson’s long-awaited election manifesto.
In the wake of Labour’s manifesto which promised to ‘transform the UK’ the Conservative’s came across as very cautious.
However for GBP investors this is exactly what they wanted.
Many remember the disastrous launch of the Tory’s manifesto in 2017, which was largely blamed for Theresa May losing her majority.
Having learnt their lesson the Conservative party opted for a more disciplined message this time, with Johnson being rewarded with polling figures that show the Tories remain significantly ahead of Labour.
US-China Trade Hopes Underpin New Zealand Dollar (NZD) Strength
While the New Zealand Dollar (GBP) has given some ground to the Pound (GBP) at the start of the week, the currency remains well positioned in broader trade thanks to improved market risk sentiment.
This comes in the wake of renewed US-China trade optimism after US President Donald Trump suggested last week that a deal is ‘potentially very close’, reigniting hopes that a preliminary agreement could be signed by the end of the year.
Further lifting risk-sensitive currencies such as the ‘Kiwi’ was the landslide victory for pro-democracy candidates in Hong Kong’s council election, which has boosted hopes of a peaceful resolution to the resent unrest in the city.
GBP/NZD Forecast: Surge in Retail Sales to Bolster the ‘Kiwi?
Looking ahead, the Pound to New Zealand Dollar (GBP/NZD) exchange rate could face some pressure overnight, following the publication of New Zealand’s latest retail sales figures.
Economists forecast tonight’s data will show a sharp surge in domestic retail sales growth in the third quarter, with expectations sales growth will have jumped from 0.2% to 1.2%.
The jump will be welcomed by NZD investors who will be hopeful that it could decrease the pressure on the Reserve Bank of New Zealand to continue cutting interest rates.