On Wednesday, the Pound to New Zealand Dollar exchange rate opened trading in the region of NZ$ 1.9355.
After a rocky day’s trading, Pound Sterling closed up slightly higher in the GBP/NZD pairing at a level of NZ$ 1.9357.
The Pound initially rose to a daily high of NZ$ 1.9409, but failed to maintain this lead because of dwindling trader confidence.
Wednesday’s UK economic data consisted of inflation rate figures for July – these showed a forecast-matching rise in the rate of price growth for the year-on-year reading.
Although the news caused initial GBP/NZD exchange rate gains, Pound traders later considered whether UK households could suffer from wage squeeze conditions because of higher inflation.
This lowered confidence and triggered GBP/NZD exchange rate losses, although as the above figures show, the Pound still made a technical overall gain against the New Zealand Dollar.
There was little New Zealand economic data to refer to yesterday, which left NZD traders to refer back to conflicting arguments about whether a weaker New Zealand Dollar supported economic growth.
Pound to New Zealand Dollar (GBP/NZD) Exchange Rate Slides on BMA’s No-Deal Brexit Warning
After almost a weak of no direct Brexit-related losses, the Pound (GBP) has once again fallen against the New Zealand Dollar (NZD) because of the latest trader concerns.
Current fears have been stoked by comments from the British Medical Association (BMA), which suggest that there might be an increased risk of viral outbreaks if Brexit goes poorly.
A briefing paper from the BMA has estimated that if the UK has a no-deal Brexit and severs ties with the EU, there could be a reduced ability to coordinate medical responses to EU disease outbreaks.
This news follows a similar story from a few weeks ago, where the government rattled GBP traders by admitting that it was stockpiling medical supplies in case supply lines were disrupted by a bad Brexit deal.
Speaking after the briefing paper came out, BMA Council Chair Dr Chaand Nagpaul said:
‘The BMA believes the public should have a final informed say on the Brexit deal and, to reject the notion of a ‘no deal’ given all the serious risks that such an outcome carries.
‘Some will say the BMA is scaremongering by warning of the dangers of a no-deal Brexit, but this is not the case.
‘As experts in delivering health services and providing care for our patients, we have a duty to set out the consequences of leaving the EU with no future deal in place.’
Another voice warning about the dangers of a bad Brexit deal was Brexit Health Alliance Co-Chair Niall Dickson, who said:
‘We should be under no illusion – if we fail to reach a good agreement on the EU and UK’s future relationship, that could be a significant threat to public health. This cannot and should not be ignored.’
New Zealand Dollar to Pound (NZD/GBP) Exchange Rate Rises as US-China Trade Talks Resume
On the other side of the currency pairing, the New Zealand Dollar (NZD) has risen against the Pound (GBP) and firmed against other currency peers today on signs of a potential improvement in US-Chinese relations.
While not direct NZ economic data, the news that US and Chinese officials are planning to meet and discuss trade has still raised demand for the New Zealand Dollar.
The US and China have come to blows in recent weeks and months, with each side threatening increasingly large tariffs on the other’s imports.
While these are very early days for the new trade discussions, it is hoped that the talks taking place later this month will avoid further escalation and ensure steady trading between the US, China and nations on the periphery such as New Zealand.
Pound to New Zealand Dollar Exchange Rate Forecast: Are GBP/NZD Exchange Rate Gains ahead on UK Borrowing Data?
The Pound (GBP) might be able to recover and rise against the New Zealand Dollar (NZD) on the coming Tuesday, when high-impact UK government borrowing data is due out.
Covering changes to the borrowing deficit in July, this is expected to show a reduction of June’s recorded deficit.
A lower deficit could raise GBP trader confidence and push the Pound up against the New Zealand Dollar.
There may be additional gains in the GBP/NZD pairing on Tuesday afternoon if the Global Dairy Trade price index lowers NZD trader confidence by showing falling dairy prices.
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