The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has declined notably today as the ‘Kiwi’ went on a bull run due to promising news from China.
GBP/NZD Exchange Rate News: Major declines for Sterling Today as Domestic Data Drops Off
The Pound Sterling (GBP) has declined by -0.6% against the New Zealand Dollar (GBP/NZD) and seen similar losses against most other rivals, with the exception of a 0.2% advance against the US Dollar (GBP/USD). The Pound’s most notable losses have been by -0.3% against the Egyptian Pound (GBP/EGP), -0.4% against the Japanese Yen (GBP/JPY) and the Polish Zloty (GBP/PLN) and -0.6% against the New Zealand Dollar (GBP/NZD) and the South African Rand (GBP/ZAR).
The Pound’s poor performance today can be attributed to today’s Gfk Consumer Confidence Survey for October falling from 3 points to 2 instead of rising to 4; a later increase on the Lloyds Business Barometer from 42 to 50 failed to instil investors with enough confidence to initiate a Sterling uptrend.
Change in Chinese Political Stance Bolsters NZD/GBP Exchange Rate on Prospective Payoff
The New Zealand Dollar (NZD) has turned bullish today due to yesterday’s highly supportive Chinese development. The Chinese government elected to cancel the nation’s ‘One Child Policy’, allowing two children per family from now onwards. The move triggered an upsurge in the value of the ‘Kiwi’, given the potential future benefits for New Zealand’s economy with future demand for dairy products such as milk powder. In addition to this news, the ‘Kiwi’ has also been supported by rises in the ANZ Activity Outlook and the NBNZ Business Confidence results for October.
The New Zealand Dollar’s gains today include 0.6% against the Euro (NZD/EUR) and the Australian Dollar (NZD/GBP), 0.7% against the Pound Sterling (NZD/GBP) and 0.8% against the US Dollar (NZD/USD) and the Canadian Dollar (NZD/CAD).
GBP/NZD Exchange Rate Forecast: UK Manufacturing and New Zealand’s Unemployed to Open Next Week’s Movement
The next data likely to cause major GBP/NZD movement next week will come from the UK first, with the announcement of the Markit October PMI for Manufacturing on Monday. At the time of writing, no forecasts had been made for the outcome. Tuesday will bring the first major ‘Kiwi’ release in the form of the country’s Q3 Unemployment Rate, which also has no predictions assigned to it.
Looking further ahead, the Bank of England (BoE) Interest Rate Decision is due on Thursday along with the BoE’s Minutes and its Inflation Report; as per previous months, a freeze at 0.50% is on the cards.
Current GBP, NZD Exchange Rates
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.2724 and the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4402 today.
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