After data pertaining to New Zealand printed disappointingly on Tuesday, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate edged higher by around 0.10%. Sterling, meanwhile, has been subject to foreign currency movement whilst traders await the British construction data.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0021.
The New Zealand Commodity Price data declined from -0.8% to -1.6%. This has caused the New Zealand Dollar to retreat from a healthy gain amid improved dairy prospects.
Yesterday…
Despite the fact that British manufacturing output increased to a four-month high, the Pound Sterling to New Zealand Dollar (AUD/NZD) exchange rate edged lower. This can be attributed to high demand for dairy products after Japanese production cooled.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 1.9933.
High Dairy Demand Boosts ‘Kiwi’ (NZD)
With the Japanese Yen weakening considerably, dairy farmers have been unable to afford the US grain imports needed to feed the livestock. That has meant demand for milk has heightened amid less output. As the world’s foremost producer and exporter of dairy products, New Zealand benefits from the higher prices.
UK Manufacturing Bolsters Pound Sterling (GBP)
British manufacturing eclipsed the market consensus on Monday, causing the Pound to rally against the majority of its most traded rivals. The Manufacturing PMI was forecast to soften from 53.3 to 53.0, but the actual result increased to 53.5.
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, stated; ‘The domestic market is this month’s stimulus of growth, supporting continued stability and a good level of confidence.’
Adding to Pound Sterling gains was better-than-expected results from Mortgage Approvals and Net Consumer Credit.
The Pound Sterling to New Zealand Dollar exchange rate has dropped to a low today of 1.9923.
Dovish Wheeler Hurts New Zealand Dollar (NZD)
After RBNZ Governor Graeme Wheeler suggested that the central bank might use macro-prudential tools to burst the housing bubble, the New Zealand Dollar softened against many of its competitors.
‘We are currently seeing considerable appreciation in asset prices in many countries as a result of extensive monetary accommodation and investors aggressively searching for yield,’ Wheeler said. ‘Many central banks and regulatory agencies have turned to macro-prudential policies in an attempt to reduce risks to financial stability, including those associated with an overheated housing market.’
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Rally
With the commodities market cooling, the potential for ‘Kiwi’ (NZD) gains are minimal. Therefore, it is likely that the Pound Sterling to New Zealand Dollar exchange rate will continue trending higher.
The Pound Sterling to New Zealand Dollar exchange rate has reached a high today of 2.0059.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.7852,
New Zealand Dollar,,Euro,0.6298,
New Zealand Dollar,,Pound,0.4993,
New Zealand Dollar,,Australian Dollar,0.9252,
US Dollar,,New Zealand Dollar,1.2735,
Euro,,New Zealand Dollar,1.5874,
Pound Sterling,,New Zealand Dollar, 2.0022,
Australian Dollar,,New Zealand Dollar,1.0802,
[/table]
