The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate declined massively today, as the world’s commodity currencies have surged upwards in the wake of yesterday’s freeze in the US Federal Open Market Committee (FOMC) Interest Rate Decision.
GBP/NZD Exchange Rate News: Sterling Flops against ‘Kiwi’ and Commodity Currencies, Fares Better Elsewhere
The Pound Sterling (GBP) has fallen by -0.7% against the New Zealand Dollar (GBP/NZD) today, along with similar losses of over -0.5% against the Mexican Peso (GBP/MXN), the Canadian Dollar (GBP/CAD) and the Australian Dollar (GBP/AUD). This commodity and emerging-market-specific rally is expected, however, given that the US Dollar (USD) has seen such a dramatic drop in value after the FOMC rate freeze yesterday evening. Against other rivals, Sterling has risen by over 0.5% against the US Dollar (GBP/USD), the United Arab Emirates Dirham (GBP/AED), the Chinese Yuan (GBP/CNY) and the Israeli New Shekel (GBP/ILS). The Pound has also advanced by a greater 1.3% against the Russian Ruble (GBP/RUB).
The lack of major UK economic publications today has meant that the lingering influence of the last UK major release, the declining Retail Sales figures for August, has limited Sterling’s potential today.
Soft ‘Buck’ means that New Zealand Dollar Exchange Rate has Soared against Detrimental Circumstances
The ‘Kiwi’ (NZD) has gone on a major 0.8% uptrend against the Pound Sterling (NZD/GBP) today, rising across the board thanks to the usual limiting factor, the US Dollar (USD), taking a high dive yesterday evening. The ‘Kiwi’ has risen by over 1.2% against the Chinese Yuan (NZD/CNY), the Euro (NZD/EUR) and particularly by 1.3% against the US Dollar (NZD/USD) today.
This upsurge has come against otherwise unfavourable conditions for the New Zealand Dollar; the price of milk remains around the $15.85 mark that it hit at the beginning of the year and the threat of further cuts to the New Zealand interest rate before the end of the year by Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler has hardly created optimal conditions for a ‘Kiwi’ rally.
GBP/NZD Exchange Rate Forecast: Equal Opportunity for Sterling or New Zealand Dollar to Take the Lead Next Week
The next week has an equally low amount of high-impact results for both the Pound Sterling (GBP) and the New Zealand Dollar (NZD), therefore after the current modifier of the US Dollar’s (USD) negative performance has lessened, it is uncertain which of the two currencies will end up on top. The biggest Pound-centric news is on Tuesday, with the figures for UK government’s Borrowing and Public Finances in August; no predictions have been made, but given that the previous results have seen the UK trade deficit remain wide open, it is unlikely that anything other than a mass reduction in the deficit would inspire discernible support for Sterling.
The New Zealand Dollar also has trade-related results due next week, with the Trade Balances for August being announced on Wednesday.
Current GBP, NZD Exchange Rates
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.4284 and the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4120 today.
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