The Pound to New Zealand Dollar (GBP/NZD) exchange rate firmed on Tuesday in a session relatively devoid of market moving economic data releases.
A strengthening US Dollar weighed upon the ‘Kiwi’ and a positive report compiled by the British Retail Consortium (BRC) offered some support to the Pound.
With the US markets closed for the Veteran Days holiday, many traders opted out of the markets as they embarked on long weekend holiday. Economists also dropped their previous concerns over last week’s softer than expected US Nonfarm payrolls report stating that the figure was not soft enough to stop the Federal Reserve from choosing to raise interest rates next year.
‘It has been a relatively quiet 24 hours of trading for the NZD exchange rate. It was never looking to be an exciting session, with little on the agenda, and the US likely in long-weekend mode ahead of today’s Veterans Day holiday,’ said Kymberly Martin, a senior market strategist from Bank of New Zealand.
The Pound received support from data released by the British Retail Consortium. The report showed that retail spending in the UK recovered modestly in October after declining in September as consumers increased their spending for Halloween and bought more items of furniture.
According to the BRC figures, total retail spending increased by 1.4% compared to the preceding year, countering the previous month’s fall of 0.8%, which was the sharpest fall since April 2012. Despite the improved figure economists, remain concerned over the effect of a mild autumn on clothing and footwear sales.
‘Sadly this warmer weather has left many fashion retailers with a substantial stock overhang, raising the question of earlier and deeper discounts as we get closer to Christmas. Retailers need a nippy November to help them sell their winter stock before the seasons out,’ said David McCorquodale, head of retail at KPMG.
The New Zealand Dollar continues to be weighed upon by weak commodity prices and concerns over a slowdown in China.
Pound to New Zealand Dollar Exchange Rate Muted in Quiet Trade
With the lack of economic data and the US markets closed for the Veteran Day national holiday the market is seeing very muted trading. The GBP/NZD is experiencing hardly any movement at all and is unlikely to see any biggish movements until Wednesdays session when the Bank of England releases its latest inflation report and the latest UK employment data is published.
Pound Sterling to New Zealand Dollar Exchange Rate Weakens
The GBP/NZD exchange rate weakened on Wednesday as the New Zealand Dollar made gains against the Euro, US Dollar and Pound as investors shrugged off comments made by Reserve Bank of New Zealand Governor Glenn Wheeler. The RBNZ governor said that the ‘Kiwi’ remains at elevated levels. Investors ignored the comments and instead turned to the higher yielding ‘Kiwi’ following the release of poor data out of Germany. The data raised speculation that inflation across the Eurozone fell yet again this month. The New Zealand Dollar also gained after the Reserve Bank’s report on the strength of the nation’s financial system reminded the market that the central bank is still in a tightening cycle, and will continue to lift interest rates when necessary.
Pound to New Zealand Dollar Exchange Rate Tumbles to 2-Month Low
The Pound declined to its lowest level in a month against the New Zealand Dollar after it received a battering from the Bank of England’s inflation report. The BoE warned that inflation could fall below 1% over the coming months and it also cut its growth forecasts.
The ‘Kiwi’ rose after data showed that the Business NZ Manufacturing Index rose to 59.3 last month from a reading of 58.5 in September, whose figure was upwardly revised from a previously estimated 58.1.
As Thursday’s session progressed the Pound continued to soften against the ‘Kiwi’ as the New Zealand currency managed to edge higher on the back of a softer US Dollar. Jobless Claims data out of the USA came in below economist forecasts and weighed upon the ‘Greenback’.
