Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises on Solid UK Job Market
The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate rose and the pairing is currently trading at an inter-bank rate of NZ$1.9291.
On Tuesday morning data revealed that UK unemployment remained at 3.8%, a 44-year low.
Meanwhile, the number of people in employment rose to a record high 32.75 million.
Added to this, between February and April unemployment slipped to 1.3 million.
The unemployment rate for women remained at a low of 3.7% which likely buoyed Sterling.
However, the creation of 32,000 jobs in the three months is a slowdown compared to the previous quarter which saw 99,000 jobs created.
New Zealand Dollar (NZD) Slides on Trump’s Tariff Threats
Overnight, US President Donald ‘Tariff Man’ Trump declared that he would impose new tariffs on Chinese imports ‘immediately’ if leader Xi Jinping does not meet him at the G20 summit.
Speaking to reporters he said that the US could impose tariffs of 25% on a further $300 billion Chinese goods.
This likely weighed on the risk-sensitive ‘Kiwi’ as risk-appetite became increasingly fragile.
Speaking to reporters, President Trump said:
‘The China deal is going to work out. You know why? Because of tariffs.
‘Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don’t want to pay the tariffs.’
China ‘Not Afraid’ of Trade War
Meanwhile, on Tuesday, China’s Foreign Ministry said that the government would respond if the US escalates the current trade tensions.
While Chinese Foreign Ministry Spokesman, Geng Shuang did not confirm a Xi-Trump meeting at G20, he stated the information would be released once available.
Geng Shuang also stated:
‘China does not want to fight a trade war, but we are not afraid of fighting a trade war.
‘If the United States only wants to escalate trade frictions, we will resolutely respond and fight to the end.’
Pound New Zealand Dollar Outlook: Will a Further Escalation of US-China Trade Tensions Weigh on NZD?
Looking ahead to this evening, the New Zealand Dollar (NZD) could rise against the Pound (GBP) following the release of the NZ electronic card retail sales.
If card sales rise higher than forecast in May, it could buoy the ‘Kiwi’.
Meanwhile, continued US-China trade tensions is likely to weigh on the risk-sensitive New Zealand Dollar.
If reports reveal that US President Donald Trump continues to threaten China with further tariffs, the Pound New Zealand Dollar (GBP/NZD) exchange rate could rise.