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Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast: Sterling Slides after RBNZ Interest Rate Cut

New Zealand Dollar Currency Forecast

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has slipped by a sizable amount today, with a recent interest rate decision by the Reserve Bank of New Zealand (RBNZ) serving to push the ‘Kiwi’ (NZD) up against its competitors.

GBP/NZD Exchange Rate News: Shortage of UK Data Leaves Sterling Rudderless Today

Pound Sterling (GBP) has presented mixed movement today, with gains consisting of 0.3% against the Euro (GBP/EUR) and 0.7% against the Hungarian Forint (GBP/HUF) and losses being made up of -0.4% against the New Zealand Dollar (GBP/NZD) and -0.8% against the Russian Ruble (GBP/RUB).

The Pound has effectively been in the doldrums today, on account of very little domestic data being released from the UK. The only printing of note has been the RICS house price balance for February, which rose from 48% to 50% as predicted.

Elsewhere, Eurosceptic House of Commons Leader Chris Grayling made the claim that David Cameron’s UK Referendum terms were of poor quality, and could make the UK worse off if they were adopted after an ‘In’ vote. Other recent ‘Brexit’ news has revolved around Bank of England (BoE) Governor Mark Carney’s recent appearance before MPs.

New Zealand Dollar (NZD) Rises on Record RBNZ Rate Cut

The appeal of the New Zealand Dollar (NZD) has increased prodigiously today, thanks to the fifth interest rate cut by the RBNZ since June 2015. While the decision to lower the rate to a record low of 2.25% (from a previous 2.50%) initially sent the ‘Kiwi’ into a nosedive, the currency was later bolstered by investor optimism returning in force over the decision.

Speaking after the cut was announced, RBNZ Governor Graeme Wheeler made remarks on the decision, citing the current difficulties in the dairy sectors as one motivation behind the move.

The New Zealand Dollar has advanced by 0.5% against the Pound Sterling (NZD/GBP) and US Dollar (NZD/USD), with greater gains of 0.7% against the Canadian Dollar (NZD/CAD) and the Euro (NZD/EUR) also being seen.

GBP, NZD Exchange Rate Forecast: ‘Kiwi’ Data due Tonight, UK Trade Stats out Tomorrow

Tonight is set to bring the announcement of the New Zealand Business NZ performance of manufacturing index and monthly food prices for February. Closing off the most notable pairing movement tomorrow morning will be the UK’s trade balance results for January, which were pessimistically predicted at the time of writing.

Current GBP, NZD Exchange Rates

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.1298 and the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4697 today.

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