Pound Sterling New Zealand Dollar Exchange Rate Live: GBP/NZD Exchange Rate Near Two-Week Low on Brexit Fears

GBP/NZD Exchange Rate Declines on Continued ‘No-Deal’ Brexit Worries

UPDATE: The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate has traded near its lowest level in almost two weeks today.

This continued deterioration in the GBP/NZD pairing has been caused by growing concerns about the effects of a bad Brexit deal.

The latest voices warning against ‘Hard Brexit’ or no deal at all have come from the Association of Police and Crime Commissioners.

In a letter to Home Secretary Sajid Javid, the Commissioners have stressed that a bad Brexit arrangement could jeopardise UK public security.

GBP/NZD Exchange Rate Dips on Worries about Bad Brexit Deal

UPDATE: The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate has continued to decline today, with the GBP/NZD pairing dropping by -0.4%.

This depreciation of the Pound is blamed on growing Brexit concerns, as Commerzbank’s Ulrich Leuchtmann explains:

‘The voices forecasting a hard Brexit are becoming increasingly shrill.

‘The foreign exchange market is slowly beginning to work out that these people might successfully torpedo a constructive solution.’

Trade Secretary’s Warning about No-Deal Brexit Rattles GBP Traders

The Pound (GBP) has slipped against the New Zealand Dollar (NZD) today on growing concerns about the UK’s exit from the European Union.

This decline puts the GBP/NZD pairing near a one-week low at a level of NZ$1.92 on the interbank exchange rate.

The latest cause of concern has been comments made by the International Trade Secretary Liam Fox, who said on Sunday that the chances of a ‘no-deal’ Brexit are ‘60% to 40%’.

In an interview with the Sunday Times, Mr Fox rattled GBP traders by warning that:

‘I think the intransigence of the [European] Commission is pushing us towards no-deal.’

New Zealand Dollar to Pound (NZD/GBP) Exchange Rate Rises despite RBNZ Forecasts

The New Zealand Dollar (NZD) has risen by 0.2% against Pound Sterling (GBP) today, mainly because the Pound has fallen in value across the board.

Other NZD exchange rates have been less positive, showing the NZ currency either declining or trading in a narrow range.

GBP/NZD Exchange Rate Volatility Forecast on NZ Dairy Price Data

This week, Pound/New Zealand Dollar exchange rate movement may primarily be caused by NZ economic data, ahead of a number of UK data releases coming out on Friday.

Taking the NZ ecostats in order, first up will be Tuesday afternoon’s Global Dairy Trade price index.

In a positive situation for the Pound, the rate of price growth is tipped to remain negative, with a printing of -1.4%.

Falling dairy prices can negatively impact NZ economic growth, as the country has a strong focus on farming and exporting dairy products.

Beyond this, the New Zealand Dollar could recover lost ground on Wednesday if the Reserve Bank of New Zealand (RBNZ) interest rate decision causes some positive sentiment.

RBNZ policymakers aren’t expected to adjust interest rates from 1.75%, but could still boost the New Zealand Dollar by hinting at a future rate hike.

This week’s last major NZ data will be Thursday’s business NZ PMI reading, which measures manufacturing sector activity.

If this shows growth as forecast, then the NZD/GBP exchange rate could rise heading into Friday’s trading session.

Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Gains Forecast on UK GDP Growth

Friday will bring a range of UK ecostats, covering GDP growth, productivity levels and business investment, among other readings.

The most important data will be a pair of GDP growth rate readings for Q2, which are expected to show a faster pace of economic expansion.

Such a result could boost the GBP/NZD exchange rate, as could a forecast-matching rise in Q2 business investment.

UK productivity stats may prove less GBP-supportive, as current estimates are for a slowdown of levels of construction and manufacturing output in June.

Adam Solomon

Adam joined the team at TorFX soon after graduating from University in 2005 with a degree in Journalism. Since then Adam has advanced to become both Head of Trading and Head of Treasury. His keen interest in the currency market and knowledge of what drives exchange rates makes him perfectly positioned to produce regular market updates focused on the movements of the major currencies.

Contact Adam Solomon