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Pound to New Zealand Dollar (GBP/NZD) Exchange Rate Dips as NZ’s PMI Beats Forecasts in June

New Zealand Dollar Currency Forecast

GBP/NZD Exchange Rate Falls as NZ Manufacturing Sector Expands

The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell by -0.2% today, with the pairing currently trading around NZ$1.915.

The New Zealand Dollar (NZD) edged higher today following last night’s release of New Zealand’s Business NZ PMI for June, which beat forecasts and rose to 56.3. As a result, ‘Kiwi’ investors are feeling more optimistic about the nation’s economic recovery.

BusinessNZ’s Executive Director for Manufacturing, Catherine Beard, said she welcomed the return of the expansion in the manufacturing sector, adding:

‘[The] one expansionary result does not represent a trend given ongoing offshore uncertainty around COVID-19.’

‘A consistent trail of new orders over the coming months would go a long way towards ensuring the second half of 2020 is better than the first.’

NZD investors are remaining cautious after NZ Prime Minister, Jacinda Arden, warned New Zealanders not to become complacent over Covid-19.

Mrs Arden warned:

‘Every country we have sought to replicate or have drawn from in the fight against Covid has now experienced further community outbreaks.’

Pound (GBP) Dips Despite PM’s Reassurances of a Return to Normality Before Christmas

The Pound (GBP) struggled today despite reassurances from Prime Minister Boris Johnson that the UK could ‘return to normality, possibly before Christmas’. However, with the UK economy set for uncertain months ahead, GBP investors are remaining cautious.

For example, yesterday saw the release of the UK’s latest employment data, which revealed that a staggering 650,000 people were made unemployment over the past months of the Covid-19 pandemic.

Resolution Foundation chief economist Mike Brewer was downbeat in his analysis, saying:

‘Britain is in the midst of an unprecedented economic shock that is profoundly affecting millions of people’s jobs.’

‘Unemployment is forecast to hit 4 million for the first time ever. And yet our official data is failing to show the true extent of this jobs crisis.’

Meanwhile, concerns over Brexit are dragging down confidence in Sterling today after a fresh row erupted between the UK and Scotland over how powers will be shared-post Brexit.

Consequently, GBP investors are becoming more anxious that trade deals could be compromised, pushing the UK economy into further uncertainty as it leaves the European Union in December.  

GBP/NZD Outlook: Could the ‘Kiwi’ Rise as China’s Economy Continues to Grow?

New Zealand Dollar (NZD) traders will be looking ahead to Thursday’s release of New Zealand’s exports and imports figures for June. Any signs that New Zealand’s exports have increased would buoy the ‘Kiwi’

Pound (GBP) traders will be looking ahead to Tuesday’s release of the UK’s Public Sector Net Borrowing for June. Any signs of Britain’s economic recovery would prove GBP-positive.

The GBP/NZD exchange rate will continue to be driven by risk sentiment next week. If China’s economy continues to improve, then we could see the ‘Kiwi’ rise as New Zealand’s major trading partner’s economy improves.

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