GBP/NZD Exchange Rate Static Today on PM’s Brexit Speech

July 20, 2018 – Written by Ben Hughes

On Thursday, the Pound opened trading against the New Zealand Dollar at a level of NZ$ 1.9251 and closed up slightly higher at NZ$ 1.9297.

This advance came despite strong headwinds against the Pound from UK domestic data, which showed retail sales growth slowing by more than expected in June.

Last month’s readings showed unexpectedly large slowdowns for the monthly and annual readings, which sparked concern that the Bank of England (BoE) might resist raising interest rates in August.

The only NZ data to refer to yesterday was similarly negative, showing a -7.8% drop in visitor arrivals on the year in June 2018 compared to June 2017.

GBP/NZD Exchange Rate News: Pound to New Zealand Dollar Losses Caused by PM’s Brexit Speech

Today’s Pound Sterling to New Zealand Dollar exchange rate losses have come ahead of a speech from Prime Minister Theresa May; some of the PM’s planned remarks have been released beforehand.

Perhaps most worryingly for GBP traders, the PM is planning to reject current EU plans for the Irish border, which might worsen relations and negotiations between the UK and the EU.

Mrs May is expected to reject the EU’s proposal to keep Northern Ireland in the EU customs union while taking the UK out, saying:

‘The economic and constitutional dislocation of a formal ‘third country’ customs border within our own country is something I will never accept, and I believe no British prime minister could ever accept.’

New Zealand Dollar to Pound (NZD/GBP) Exchange Rate Steady on US Political Fluctuation

The New Zealand Dollar was in high demand against the Pound earlier today, but has since levelled out in the pairing due to events in the US.

Earlier, US President Donald Trump weakened the US Dollar by accusing China of currency devaluation and criticising the Federal Reserve for raising interest rates and strengthening the US Dollar.

This initially pushed the NZD/GBP exchange rate higher, as the news unsettled USD traders and raised risk sentiment for currencies like the New Zealand Dollar.

Since then, however, Mr Trump has mused greatly increasing trade tariffs against China, which risks causing global economic trading disruption and potential damage to New Zealand’s trading relationships.

Pound Sterling to New Zealand Dollar Exchange Rate Forecast: Can GBP/NZD Recover on Industrial Orders Growth?

The Pound might be able to advance against the New Zealand Dollar on Tuesday next week, when Confederation of British Industry (CBI) industrial orders data comes out.

Measuring changes in factory business during July, this is predicted to show slight growth with a shift from 13 points to 15.

On the other side of the pairing, the New Zealand Dollar to Pound exchange rate could rise later on Tuesday if June’s NZ trade surplus shows unexpected growth.

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TAGS: Pound New Zealand Dollar Forecasts