The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate strengthened by around 0.36% on Thursday morning.
After Bank of England (BoE) policymaker David Miles suggested that inflationary issues were temporary, the Pound strengthened versus many of its peers. However, disappointing domestic data slowed the advance.
The New Zealand Dollar, meanwhile, is trending lower versus the majority of its most traded rivals after the Bank of Canada (BOC) cut its benchmark rate, spurring speculation that the South Pacific central banks will follow suit.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.0051.
Pound Sterling (GBP) Exchange Rate Fluctuates on Disappointing Data
After a high-ranking BoE policymaker made a speech regarding inflation on Thursday, the Pound strengthened versus many of its major peers. ‘Probably this very low inflation we’re seeing right now is a temporary phenomenon, that means we can afford to look through it and set policy in a more gradual way than if we just had to react always to the latest inflation numbers,’ David Miles told BBC Radio Scotland.
However, after domestic data printed poorly the Pound’s advance was stymied. Public finances data showed borrowing increased despite predictions of a dip. This could potentially ease pressure on the BoE to hike rates in the near-future.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low today of 1.9995.
New Zealand Dollar (NZD) Exchange Rate Dives on BOC Rate Cut
After the Bank of Canada (BOC) cut its benchmark rate, demand for the ‘Kiwi’ (NZD) cooled amid speculation that the Reserve Bank of New Zealand (RBNZ) will also loosen policy. This has added to negative sentiment after inflation in New Zealand fell for the first time in two years.
‘The RBNZ will want to be confident inflation is heading to around 2 percent before lifting interest rates again,’ said Nick Tuffley, chief economist at ASB Bank Ltd. ‘We’re not explicitly forecasting any more rate increases.’
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Hold Gains ahead of ECB
With the ECB rate decision likely to cause significant market volatility, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is could hold gains whilst trader focus is set firmly on Eurozone proceedings.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced to a high today of 2.0148.