Pound New Zealand Dollar (GBP/NZD) Exchange Rate Retreats following Rise in Risk-Appetite
Shortly after reaching its highest rate in a week overnight, the Pound New Zealand Dollar (GBP/NZD) exchange rate fell by over half a cent today as risk-appetite was reinvigorated following a dip in the US Dollar (USD).
Despite the pairing tipping in favour of the quote currency, GBP/NZD remains near week highs.
Pound (GBP) Exchange Rates Volatile following No-Deal Brexit Plans
The Pound (GBP) saw a broad sell-off yesterday after the UK government released no-deal Brexit advice to the public, which stoked fears about how the British economy may suffer should the UK fail to secure a trade deal with the EU.
UK Brexit Secretary Dominic Raab attempted to alleviate fears by expressing optimism that a deal was within reach, but the no-deal papers madee for stressful reading nonetheless.
As UK-EU negotiations reach a critical phase and information as to their actual progress remains scarce, investors will likely be wary of investing too heavily in GBP.
New Zealand Dollar (NZD) Exchange Rates Rise following Trade Data
The New Zealand Dollar (NZD) has been aided in the last few days by some strong domestic data, a trend continued overnight as the country released its latest trade data.
New Zealand’s trade deficit was revealed to have decreased from N$ -288m to N$ -143, despite economists projecting that the deficit might widen.
This, along with an increased market risk-appetite, has seen the ‘Kiwi’ fare well against the Pound (GBP) during today’s session.
Pound New Zealand Dollar Exchange Rate Forecast: GBP/NZD Volatile amid Lull in Data?
The Pound New Zealand Dollar (GBP/NZD) exchange rate may fluctuate throughout next week’s session, as neither currency has much high impact data to look to for buoyance.
The UK’s first data of the week comes on Wednesday morning in the form of housing prices for August, which are forecast for a slight decrease, potentially prompting a dip in Sterling.
British mortgage data will then follow on Thursday, which could likewise cause GBP to decline if the figures follow in the footsteps of today’s mortgage figures.
Finally, the UK’s Gfk consumer confidence for the month is due next Friday, which is slated for a high impact and may prompt a sell-off in the Pound if the figure is reflective of no-deal Brexit fears.
The New Zealand Dollar has an even quieter session, with the nation’s building permits only being released after midnight on Thursday.
These are forecast for a sizeable decline, but an increase in the private capital expenditure for the second quarter, released at the same time, could counterbalance any losses.
Otherwise, Sterling may continue to be buffeted by swirling Brexit uncertainty, while the ‘Kiwi’ will likely be influenced by risk-sentiment and the state of the Australian Dollar (AUD).
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TAGS: Currency Predictions Pound New Zealand Dollar Forecasts