The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has been in a negative position today, as have a majority of the other Pound (GBP) peer pairings. This loss echoes last week’s poor Pound performance.
GBP/NZD Exchange Rate News: Budget Announcement Fails to Shift Flagging Pound
The Pound’s (GBP) losses today have remained in the face of the 2016 Budget Announcement, which has been a diverse and ultimately divisive bag of policies and schemes.
Most notable among the Chancellor’s announcements today was a plan to tax sugary soft drinks in a bid to combat childhood obesity; this was alternately met with praise and condemnation by health campaigners such as Jamie Oliver and by opponents who see it as damaging to the less well-off and to UK jobs
Also announced was a cut in corporation tax to 17% (labelled as ‘mates’ rates’ by Jeremy Corbyn) and a policy to help homeowners save for property by paying into ISAs.
The Pound has fallen by -0.2% against the New Zealand Dollar (GBP/NZD) today and slipped by greater amounts of -0.5% against the Canadian Dollar (GBP/CAD) and the United Arab Emirates Dirham (GBP/AED), as well as posting a -0.9% dive against the Russian Ruble (GBP/RUB).
New Zealand Dollar (NZD) Fares Poorly on Recent Dairy Auction Price Cut
While it has recorded a few gains today, the New Zealand Dollar (NZD) has nonetheless been on a sliding path against most of the competition.
The last pieces of New Zealand economic data released were the current account balance results for the fourth quarter, which fell into negative ranges. Prior to this, the New Zealand Dairy Auction for March recorded a drop in dairy prices, something that only served to add to the current damaging influence on the appeal of the ‘Kiwi’.
The New Zealand Dollar has fallen by -0.2% against the Canadian Dollar (NZD/CAD) and the US Dollar (NZD/USD) today; a gain of 0.2% against the Pound Sterling (NZD/GBP) has also been recorded.
GBP/NZD Exchange Rate Forecast: NZ GDP and BoE Interest Rate Decision Incoming
The near-future is set to bring highly impactful for both New Zealand and the UK.
In the former case, tonight will bring New Zealand’s GDP results for the fourth quarter, which were forecast to fall on previous printings on the quarter and the year at the time of writing.
Later on tomorrow, the Bank of England (BoE) interest rate decision for March will be announced; a rate freeze is predicted and as the Budget took place so close to the decision, the minutes are not expected to reflect a timely response to this most recent news.
Current GBP, NZD Exchange Rates
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the region of 2.1355 and the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4685 today.
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