GBP/NZD Exchange Rate Eases as US-China Trade Tensions Ease
The Pound New Zealand Dollar (GBP/NZD) exchange rate eased to NZ$1.922 today, despite New Zealand’s August ANZ business confidence falling from -44.3 to 52.3 – their worst reading in over a decade.
Meanwhile, August’s NZ business activity outlook gauge fell from 5% to 0.5%.
Sharon Zollner, a Chief Economist at ANZ, commented:
‘Most activity indicators fell again in August to even weaker levels. Employment, investment and export intentions all fell to dismal levels, along with profit expectations.’
However, New Zealand Dollar traders will be awaiting today’s publication of July’s building permits figure for July. Any signs of improvement could bolster market confidence in ‘Kiwi’.
US-China trade tensions also remain in focus for many NZD traders today.
Today saw NZ markets rally following China’s call for a clam in the trade war between the two superpowers.
David Madden, a Market Analyst at CMC Markets, said:
‘A spokesperson for China’s ministry of commerce, said that an escalation in trade tensions is not good for China, the US, or the rest of the world… The largely hopeful tones of the update from China has lifted market sentiment, and that sparked buying this morning.’
GBP/NZD Exchange Rate Falls despite Rising Cross-Party Opposition to No-Deal Brexit
The Pound continued to fall against the ‘Kiwi’ today despite growing cross-party opposition to Prime Minister Boris Johnson after successfully suspending Parliament from mid-September until October 14, the day of the Queen’s speech.
Rebel MPs from across all parties are gearing up to challenge the Conservative Government next week, which will likely see a no-confidence vote in Boris Johnson led by opposition leader Jeremy Corbyn.
Mr Corbyn said:
‘Boris Johnson’s pursuit of a no-deal Brexit will be a disaster for the whole country… His intention to suspend parliament shows he is also a threat to our democracy.’
As a result of recent political developments, Sterling traders are remaining jittery as a no-deal Brexit now appears more likely
GBP/NZD Outlook: August’s UK Consumer Confidence Figure in Focus
Sterling traders are looking ahead to tomorrow’s publication of August’s GfK consumer confidence figure, which is expected to ease from -11 to -12.
Tomorrow will also see the publication of July’s UK mortgage approvals figure, which is expected to ease from 66.440 thousand to 66.167 thousand.
Meanwhile, New Zealand Dollar traders will be focusing on global political and economic developments between the US and China.
The GBP/NZD will, however, likely remain subdued as cross-party political tensions escalate around Brexit and the Conservative Party.