The Pound started the new trading week on the front foot against the New Zealand Dollar rising to an intra-day high of 2.0855 inter-bank for the first time since 5 April on a day of no UK economic data releases.
Unlike most other sterling crosses, the British pound to New Zealand dollar exchange rate fell on Wednesday.
However, overnight the Business NZ Manufacturing Index fell to 54.7, compared to the 56.26 forecast.
The result has seen the NZD exchange rates weaken across the board today.
March’s Chinese trade data sharply benefited the NZ currency on Wednesday, with markets reassured that the world’s second largest economy is showing some signs of improvement.
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Latest Pound/New Zealand Dollar Exchange Rates
On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The live inter-bank GBP-GBP spot rate is quoted as 1 today.
Today finds the pound to euro spot exchange rate priced at 1.164.
Today finds the pound to us dollar spot exchange rate priced at 1.247.
The pound conversion rate (against australian dollar) is quoted at 1.915 AUD/GBP.
Please note: the FX rates above, updated 25th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
The near-future could see pound to NZ dollar exchange rate losses increase dramatically.
With little in the way of impactful New Zealand data out recently, the NZD has mainly been relying on the deterioration of the US Dollar for its increased appeal.
This appeal may be amplified dramatically against the Pound and others shortly, as impending speeches from Fed officials John Williams and Jeffrey Lacker could follow the dovish tone of their fellows.
Some welcome news for those investors/traders interested in the GBP to NZD exchange rate pairing today, as UK CPI beat market expectations.
The New Zealand dollar is outperforming most currency rivals on Tuesday, except the bullish pound sterling and Australian dollar.
While the NZD was supported by signs of continued strength within the domestic housing market this only slightly tempered the bullishness of the pound to NZ dollar exchange rate.
As investors take increasing comfort from the UK’s improved inflationary outlook it seems likely that the GBP/NZD pairing will remain on an uptrend, despite expectations of no change at Thursday’s Bank of England (BoE) policy meeting.
Monday was dominated from data from China, now New Zealand’s most important trading partner, that showed that inflation pressures in China were more muted than expected in March.
In March, consumer prices in Asia's largest economy and the world’s second largest economy were flat in month-on-month terms, but rose at a 2.3% year-on-year pace.
Jim Reid at Deutsche Bank in a research note sent to clients commented ‘CPI for the month of March has printed at +2.3% year on year which was a smidgen below expectations (of +2.4%) but flat on the prior month which was then the highest since July 2014 and will likely provide for some comfort that the data is stabilising’.
New Zealand Dollar (NZD), Australian Dollar (AUD) Exchange Rates Initially Weakened by Chinese Data
The data initially hurt the Kiwi and other commodity currencies like the Aussie (Australian Dollar) allowing the Pound to get the new trading week off to a positive note but this did not last long as a further data release from China reversed the earlier gains after data showed that Chinese Producer prices recorded first rise since 2013.
Julian Evans-Pritchard at Capital Economics said ‘We aren't overly concerned by this since with the price of domestic goods holding up better, many firms should actually benefit from these lower input costs. In any case, with commodity price deflation now easing, producer prices are set to fall at a slower rate going forward’.
The markets attention was further drawn back to the UK with further disclosures from the so-called ‘Panama papers’ that led to speculation that Prime Minister David Cameron will announce further measures to combat tax avoidance after asking his Chancellor, George Osborne to publish his own tax records.
GBP to NZD Exchange Rate Support Runs at 2.0754
Thus the political pressure on the Pound continues to increase with the 23 June referendum on the UK’s membership of the European Union (EU) high on the agenda.
Later today sees the publication of the latest UK inflation and retail sales data and Thursday brings the latest Bank of England monetary policy announcement although the rest of the week is likely to be dominated by the Chinese GDP data out on Friday.
Support for the GBP/NZD exchange rate pairing on the foreign exchange is running at 2.0754, then 2.0732 and thereafter at 2.0710 with resistance at 2.0798, then 2.0820 and 2.0842 thereafter.