The Pound New Zealand Dollar has been trading closely today, though if forecasts are anything to go by, this narrow trending may deteriorate into a significant slump by the middle of the week.
The New Zealand Dollar has managed to hold its ground despite ongoing concerns about how much earthquake repairs will cost.
Last week, the Pound made a slight decline against the New Zealand Dollar overall, starting off at a rate of 1.77 on Monday and closing around 1.76 on Friday.
Pound Sterling Uncertainty Triggered amid PM’s CBI Assurances
The week has started relatively quietly for the GBP NZD exchange rate, which has primarily been influenced by Prime Minister Theresa May.
Speaking at a Confederation of British Industry (CBI) conference, May has been endeavouring to assure UK businesses and overseas investors that the UK is ‘open for business’ and will continue to be during and after ‘Brexit’.
Among the pledges made by the PM have been a cutting of corporation tax and a substantial annual investment into scientific research.
Less inspiring has been a backtracking by the PM on the issue of putting workers onto company boards, a move that has been at odds with her previous rhetoric of equality and inclusivity.
Ultimately, the Pound has failed to be improved by this news, likely because of doubts over the viability and sincerity of the Government’s plans.
New Zealand Dollar Pound Rises; Talk of China Trade Upgrade Offsets Earthquake Blues
The NZD GBP exchange rate has climbed to 0.56 at the start of this week’s trading, owing to the latest developments coming out of a post-quake New Zealand.
While repair costs are still being estimated and the Government is reported to have put some policy plans on hold, the nation has still been dealt good news alongside the recent high-magnitude quake.
In the dairy sector, farmers have been optimistic about the future, in the wake of last week’s supportive 4.5% rise in prices at the Global Dairy Trade auction.
Additionally, gains for the ‘Kiwi’ have also come from talks about ‘upgrading’ the New Zealand-China free trade agreement, with a particular focus on dairy-related trade.
This Week’s GBP NZD Exchange Rate Forecast
This week, Pound Sterling New Zealand Dollar exchange rate movement may occur as a result of Wednesday’s UK Autumn Statement, Thursday’s New Zealand trade balance figures and Friday’s UK GDP growth rate stats.
The main event, the Autumn Statement, is expected to show a pessimistic outlook in the short-term for the UK, although Chancellor Phillip Hammond is also set to promise greater spending to encourage economic activity.
On Thursday night, New Zealand is expected to see a trade deficit reduction in October from -1436m to -805m, while for Friday’s Q3 second estimates for UK GDP growth, a forecast quarterly slip and annual rise could well unsettle the GBP NZD pairing.