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Pound to New Zealand Dollar (GBP/NZD) Struggling for Direction

New Zealand Dollar Currency Forecast

The Pound to New Zealand Dollar (GBP/NZD) exchange rate continues to remain on the front foot in this morning’s session.

With the pair currently trading around $1.8984.

Pound (GBP) Continues to Gain as Vaccines to be given in Pharmacies

The Pound (GBP) found further gains this morning as the UK vaccine rollout continues to be on course as a success.

It comes as chemists and high street pharmacies such as Boots and Superdrug will begin administrating the vaccine to the public.

Boris Johnson also told MPs that distribution will be going to 24/7 as soon as possible.

With over 2 million people now vaccinated against the virus in the UK, GBP investors continue to be cheered that the reopening of the economy will happen quicker than first expected.

However, worrying coronavirus statistics continue to cause concern for investors as the UK coronavirus deaths pass 100,000 after 1,564 are reported in one day.

New Zealand Dollar (NZD) Rangebound against Struggling US Dollar (USD)

The New Zealand Dollar (NZD) made limited gains this morning due to a pullback in the US Dollar (USD) however, NZD gains are limited because of investor caution surrounding the global coronavirus pandemic situation.

However, analysts at Australia and New Zealand Banking Group (ANZ) have changed their outlook and expect the inflation rate to be cut to 0.1% in May, dodging a negative OCR and reflecting a more positive economic outlook.

Analysts from ANZ explained that the RBNZ will remain more cautious and dovish than the market expectations.

Sharon Zollner, chief economist at ANZ explained:

‘We now expect the RBNZ to cut the OCR only one more time, with a -15bp tweak to 0.1% at the May Monetary Policy Statement.’

‘If COVID-19 returns to our shores in a significant way, a negative OCR will once more be game on. We expect the RBNZ to maintain a dovish bias for a long time yet.’

Pound to New Zealand Dollar (GBP/NZD) Forecast Could Be Pressured by GDP Growth

The Pound to New Zealand Dollar (GBP/NZD) exchange rate is expected to move in relation to shifts in market sentiment over the coming sessions, however Pound investors will be looking towards the publication of the UK’s latest monthly GDP figures, which could spell trouble for the currency.

The Pound (GBP) will remain sensitive to any shifts in Britain’s coronavirus situation. If infection rate figures continue to fall in the lockdown, it could support Sterling further.

However, any signs that the lockdown is not working and infections continue to rise could lead to worry about Britain’s economic and cause losses for the Pound.

Any uncertainty over US politics and the pandemic could weaken the risk-sensitive ‘Kiwi’ in coming sessions, as souring market sentiment would drag on NZD rates.