The Pound Sterling (GBP) has made a scarcely notable gain against the New Zealand Dollar (GBP/NZD) today, something likely brought about by the lull before Chancellor George Osborne delivers his speech this afternoon.
Jump up in UK Car Stats Failed to Reassure GBP Investors Today
The only notable UK economic publication today (other than the rising Halifax House Prices in December) has been the annual New Car Registrations for December, which have risen from 3.80% to 8.4%. This has correlated with an overall record breaking rise in registrations in 2015, which was a 6% improvement on 2014.
Despite this, the Pound made no discernible positive movement today in the immediate wake of the news.
Earlier…
The Pound Sterling (GBP) has dropped against the New Zealand Dollar (GBP/NZD) by -0.3% today, with a large number of losses also being recorded in many of the Pound’s other pairings. The price of milk has increased marginally since yesterday, which may be the cause for the New Zealand Dollar’s (NZD) currently desirable state.
UK Car Registrations Figure due Shortly, Optimistic Forecasts Laid Out
The next pairing-centric data will come from the UK, with the release of the nation’s New Car Registrations on the year in December. Although no official predictions have been made, economists are expecting that 2015 on the whole will show a record high for sales in the country.
Earlier…
The Pound Sterling (GBP) has dipped to 0.5% against the New Zealand Dollar (GBP/NZD) today; this is likely due to a slight deterioration in the value of the US Dollar (USD) following the ISM Non-Manufacturing Composite for December, which fell from 55.9 points to 55.3.
National Conditions could lead to Further New Zealand Agricultural Economy Problems in Near Future
The declining price of milk has been an obvious issue for the economy of New Zealand over the past months, but a new threat to the beleaguered industry appears to have emerged in the southernmost region of Southland.
Dairy production in the region appears to have dropped during the 2014-2015 season, due to a below-average growth of grass at the beginning of the past year. Southland Federated Farmers Dairy Chairman Graeme McKenzie stated that while the news didn’t mean the immediate downfall of cattle milking in the region: ‘There are measures that people have to take so that they’re still looking after their animals but that’s definitely at the cost of production’.
Earlier…
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has risen by a significant amount today, thanks to the latter currency being adversely affected by the first Dairy Auction of the year.
GBP/NZD Exchange Rate News: Disappointing UK PMIs Fail to Dampen Investor Enthusiasm
The Pound Sterling (GBP) has been posting a number of sizable gains against the competition today, a somewhat impressive feat given that the only UK data out today has been negative in tone. The UK Composite and Services PMIs for December have both fallen on prior results, something that has failed to send the Pound into a knee-jerk downtrend. This may be because despite falling, the figures have nonetheless remained above 55 points, thereby indicating growth.
The Pound Sterling has risen by 0.7% against the New Zealand Dollar (GBP/NZD) today and has recorded greater gains of over 1% against the Australian Dollar (GBP/AUD) and the South African Rand (GBP/ZAR). This is an expected improvement in the GBP/NZD pairing that began yesterday before the Dairy Auction results were released.
New Zealand Dollar (NZD) Prospects Lowered Considerably after Dairy Auction
The New Zealand Dollar (NZD) has gotten off to an exceptionally bad start this year due to the first Dairy Auction resulting in a -1.6% drop in the average winning price. This has naturally sent the ‘Kiwi’ into a downward spiral.
According to Federated Farmers Dairy Industry Group Chairperson Andrew Hoggard, in order to restore the nation’s vast dairy industry at a viable level for farmers: ‘We’re going to need something like 8-10% rises every auction from now on out’.
The New Zealand Dollar has fallen by -0.6% against the Pound Sterling (NZD/GBP) and -0.8% against the Euro (NZD/EUR) and the US Dollar (NZD/USD).
GBP/NZD Exchange Rate Forecast: Low-Key UK Data due Tomorrow ahead of Greater UK Printings on Friday
As it stands, the UK will have a clear majority share of economic publications for the rest of the week, therefore the Pound Sterling (GBP) is likely to cause the most movement in the pairing.
The only New Zealand releases left this week will be tonight’s NZIER Capacity Utilisation and Business Confidence results for the fourth quarter; the only prediction made has been a rise in Capacity from 91.4% to 91.10%.
Although a UK publication is out tomorrow, the December annual New Car Registrations announcement is not expected to cause a major shift in the market.
More likely to cause this will be Friday’s meeting between European Commissioner Jonathan Hill and Bank of England (BoE) Deputy Governor Jon Cunliffe, along with the Trade Balance Results for November.
At the time of writing, forecasts were optimistic for this latter area with reductions in the deficit across all three sections.
Current GBP, NZD Exchange Rates
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.2033 and the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4541 today.
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