The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 1.9783, fluctuating between a low of 1.9774 and a high of 1.9977. Movement at this time is around -0.88% which is likely to be a result of the unimpressive UK domestic data results today.
Yesterday the Pound held gains against most of the majors having had very little domestic data releases to affect movement.
Conversely, the New Zealand Dollar softened against many currencies yesterday as a result of an announcement that the New Zealand house price index, measured by the Real Estate Institute of New Zealand (REINZ), had declined by -0.7% in July.
Today’s heavy economic calendar, in terms of UK domestic data, was in stark contrast to the sparse docket seen yesterday.
The ILO Unemployment Rate stayed true to the forecast figure of 6.4% down from the previous figure of 6.5%. Ordinarily this would have been good news for UK economic standing, and would have bolstered the Pound. However, the weekly earnings data posted a negative result which marred the potential gain from low unemployment. Average Weekly Earnings was forecast at -0.1% which was already a significant decline from the previous figure of 0.4%. Actual data was revealed to be well below par at -0.2%. The miscorrelation between that of unemployment and weekly earnings has softened Sterling against most other currencies. John Philpott from The Jobs Economist stated; ‘Good news for the jobless is being offset by ever slimmer pickings for those already in work, giving the UK labour market a distinctly bittersweet flavour’.
Further complications have arisen concerning the strength of the Pound. The Bank of England (BoE) Inflation Report was dovish; the committee decided to maintain the current monetary policy and speculation of an interest rate hike before the close of the year has been stubbed out as a result.
The New Zealand Dollar has seen relatively little movement today having had no domestic data releases as yet. As geopolitical concerns escalate expect the ‘Kiwi’ (NZD) to continue to decline as traders continue the risk aversion trend. Tonight’s Business Performance of Manufacturing Index and Retail Sales Ex Inflation reports for New Zealand may well affect movement.
The Pound Sterling to New Zealand Dollar exchange rate has hit a low today of 1.9720.
Pound Sterling to New Zealand Dollar Exchange Rate Forecast
Tomorrow’s economic calendar is quiet for both Sterling and the ‘Kiwi’.
Friday will be a key day, from a UK economic perspective, and should ignite movement in the Pound. The second quarter Gross Domestic Product (GDP) report is incredibly important; should the result prove positive it will increase demand for Sterling. It is forecast to remain at 3.1% from the previous figure.
Akin to Thursday; Friday’s economic calendar will see no domestic data releases pertaining to the New Zealand Dollar.
The Pound Sterling to New Zealand Dollar exchange rate has hit a high today of 1.9977.
Comments are closed.