GBP/NZD Exchange Rate Steadies as US-China Trade Talks Progress
The Pound New Zealand Dollar (GBP/NZD) exchange rate is steady today and is currently trading around NZ$1.9357 on the inter-bank market.
The New Zealand Dollar (NZD) stabilised against the Pound (GBP) today as US-China trade talks continue, although a White House official has commented that they are ‘not satisfied yet’, while progress was hinted at.
China is New Zealand’s largest trading partner, and any indications of a consensus emerging between the two superpowers uplifts market confidence in the ‘Kiwi’.
There are no notable Chinese or New Zealand economic data releases today, with many NZD traders focusing on global political developments instead.
The ‘Kiwi’ has benefited from the New Zealand Prime Minister Jacinda Arden’s recent bullishness about the economy, saying that it ‘continues to outperform its international peers’.
Arden added that Australia, Canada and the EU were ‘all experiencing growth at a lower rate per quarter than what New Zealand is.’
Sterling, meanwhile, has remained flat as Prime Minister Theresa May heads over to both France and Germany to meet with EU leaders, including French President Emmanuel Macron, to discuss a possible extension to Brexit.
Bruno Le Maire, the French Finance Minister, commented:
‘I prefer an agreement. But Theresa May should give us the reasons why she wants the delay and these reasons must be credible.’
GBP/NZD Exchange Rate Rangebound as May Seeks Brexit Extension
The Pound has failed to make any notable gains today, as a no-deal Brexit still haunts markets as Mrs May has provided no indications of a feasible alternative ahead of Friday’s official day of the UK’s exit from the EU.
Many Sterling investors are paying close attention to developments within the EU today, ahead of tomorrow’s important emergency summit which will discuss a possible extension for Brexit.
Simon Coveney, the Irish Foreign Minister, has echoed many concerns within the bloc, saying:
‘No-deal in my view would be an extraordinary failure of politics and we need to ensure that that doesn’t happen.’
‘But of course there needs to be a real plan to go with a request for an extension – that’s credible – in order for that extension to be agreed over the next three days, and I think that’s likely to happen.’
With a general lack of UK economic data today, Brexit has become, once again, the primary focus.
GBP/NZD Forecast: Sterling Could Soar on Brexit Extension News
New Zealand Dollar traders will be looking ahead to tomorrow’s publication of the NZ Food Price Index figures for March, which are expected to improve.
Thursday, meanwhile, will see a slew of important Chinse economic data, with the most significant being the CPI figures for March. These will be followed by the NZ Business PMI figures for March, which are expected to rise.
Sterling traders, however, will be paying close attention to tomorrow’s EU summit in which a possible extension to Brexit will be discussion, and any indications that this could be forthcoming would see the Pound soar on no-deal Brexit relief.
The GBP/NZD exchange rate will remain dictated by Brexit and global political developments, and as the clock ticks down to the UK’s leaving date on Friday, any signs of a consensus emerging between the UK and the EU – and within the UK Parliament – could lend the Pound some much-needed uplift.