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Pound Sterling to New Zealand Dollar News: GBP/NZD Exchange Rate Plummets to Lowest since May 2015
Published: 31 Mar at 2 PM Tags: Pound Sterling, Dollar Exchange Rate, New Zealand Dollar Exchange Rate, Currency Exchange, Forex, UK, Exchange Rates,
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has plummeted since Tuesday’s session as a dovish Federal Reserve spurs a risk-on attitude in the global market.
Hedged Fed Rate Hike Bets Inspire Risk-Sentiment in Forex Market
Amid a considerable lack of fresh data, the New Zealand Dollar saw a surprise uptick in investor favour this week causing the Pound to drop sharply against it – even more so than it did against many of its other rivals, by a whopping 440 pips since Monday’s session.
The GBP/NZD pair saw a brief rise earlier this week when investors briefly chose Sterling over riskier currencies on Bank Holiday Monday, but dropped from around 2.1213 to a 10-month-low of 2.0731 yesterday. The pair is currently fluctuating around 2.0785, slightly down from this morning’s 2.0805.
The primary reason for such bearish movement in the pair is a sudden risk-on attitude in the global market triggered by the Federal Reserve’s reassertion that it would be taking the ‘better safe than sorry’ approach to interest rate adjustments.
Disappointed in the immediate future prospects of the ‘safe-haven’ US Dollar, investors’ flocked to risky currencies like the ‘Kiwi’.
This movement may have been exaggerated after some Fed policymakers showed hawkish attitudes last week, giving investors false hope.
Comfortable UK Data Could Help Sterling Hold Position
While risk-sentiment movements are typically large and influential, the Pound may have found a foothold in today’s session.
Thursday morning saw several ecostats for the UK come out better than forecast. A March consumer confidence survey revealed that confidence had remained at 0 rather than falling into an expected contraction.
More impressively, Britain’s quarterly Gross Domestic Product data proved that growth in the nation had unexpectedly accelerated from 1.9% to 2.1% year-on-year. The figure was originally forecast to hold a steady 1.9% growth.
Unfortunately, other news weighed Sterling down. February’s mortgage approvals data dropped more than expected from the previous figure of 74.1k to 73.1k.
Pound Sterling to New Zealand Dollar Exchange Rate Forecast: Upcoming Dairy Auction Could Dictate GBP/NZD Movement
The GBP/NZD pair could be set to drop further before the end of the week, however one big event early next week has the potential to turn the tables.
Tuesday’s New Zealand dairy auction will reveal whether the price of New Zealand’s most valuable commodity continues to struggle.
Bad news has surrounded the commodity for over a year now; with recent reports of decreased demand and a surplus of powdered milk stocks in New Zealand’s trade partner China having a negative impact on the appeal of NZD.
While UK house price data and Manufacturing PMI are due for release tomorrow, the reports may prove unable to bolster the Pound even if they exceed expectations as worsening conditions in the steel crisis may make investors hesitant.
It’s possible that this low period means the Pound could bounce back, but it currently seems more likely that Sterling will remain on a downtrend while so much uncertainty in the UK economic outlook remains.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate currently trends around 2.0785 while the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate trends in the region of 0.4810.
Hedged Fed Rate Hike Bets Inspire Risk-Sentiment in Forex Market
Amid a considerable lack of fresh data, the New Zealand Dollar saw a surprise uptick in investor favour this week causing the Pound to drop sharply against it – even more so than it did against many of its other rivals, by a whopping 440 pips since Monday’s session.
The GBP/NZD pair saw a brief rise earlier this week when investors briefly chose Sterling over riskier currencies on Bank Holiday Monday, but dropped from around 2.1213 to a 10-month-low of 2.0731 yesterday. The pair is currently fluctuating around 2.0785, slightly down from this morning’s 2.0805.
The primary reason for such bearish movement in the pair is a sudden risk-on attitude in the global market triggered by the Federal Reserve’s reassertion that it would be taking the ‘better safe than sorry’ approach to interest rate adjustments.
Disappointed in the immediate future prospects of the ‘safe-haven’ US Dollar, investors’ flocked to risky currencies like the ‘Kiwi’.
This movement may have been exaggerated after some Fed policymakers showed hawkish attitudes last week, giving investors false hope.
Comfortable UK Data Could Help Sterling Hold Position
While risk-sentiment movements are typically large and influential, the Pound may have found a foothold in today’s session.
Thursday morning saw several ecostats for the UK come out better than forecast. A March consumer confidence survey revealed that confidence had remained at 0 rather than falling into an expected contraction.
More impressively, Britain’s quarterly Gross Domestic Product data proved that growth in the nation had unexpectedly accelerated from 1.9% to 2.1% year-on-year. The figure was originally forecast to hold a steady 1.9% growth.
Unfortunately, other news weighed Sterling down. February’s mortgage approvals data dropped more than expected from the previous figure of 74.1k to 73.1k.
Pound Sterling to New Zealand Dollar Exchange Rate Forecast: Upcoming Dairy Auction Could Dictate GBP/NZD Movement
The GBP/NZD pair could be set to drop further before the end of the week, however one big event early next week has the potential to turn the tables.
Tuesday’s New Zealand dairy auction will reveal whether the price of New Zealand’s most valuable commodity continues to struggle.
Bad news has surrounded the commodity for over a year now; with recent reports of decreased demand and a surplus of powdered milk stocks in New Zealand’s trade partner China having a negative impact on the appeal of NZD.
While UK house price data and Manufacturing PMI are due for release tomorrow, the reports may prove unable to bolster the Pound even if they exceed expectations as worsening conditions in the steel crisis may make investors hesitant.
It’s possible that this low period means the Pound could bounce back, but it currently seems more likely that Sterling will remain on a downtrend while so much uncertainty in the UK economic outlook remains.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate currently trends around 2.0785 while the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate trends in the region of 0.4810.
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Source: moneytransfer.co.uk