Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises as China Responds to Trump’s Tariffs
The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate has risen around 0.4% today and the pairing is currently trading at an inter-bank rate of NZ$1.9772.
Risk-appetite continued to decrease as China escalated trade tensions with the US.
This afternoon, China announced plans to hike tariffs on American goods imported by Chinese companies.
Beijing said there will be new tariffs of between 5% and 25% on $60 billion worth of US imports, hitting around 5,000 products.
The tariffs are due to be enforced from 1 June.
New Zealand Dollar (NZD) Slides as China says it ‘Will Never Surrender’
Earlier today, US President Donald Trump issued warnings aimed at China not to retaliate to 25% tariffs implemented on $200 billion worth of Chinese goods.
In a tweet, the US President wrote:
‘I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!’
The US has also started work on raising tariffs on what are essentially all remaining imports from China, valued at around $300 billion.
This weighed on the risk-sensitive ‘Kiwi’.
Speaking to reporters in Beijing, Chinese Foreign Ministry Spokesman, Geng Shuange said:
‘China will never surrender to external pressure. We have the confidence and ability to protect out lawful and legitimate rights.’
Sterling (GBP) Rises as Cross-Party Brexit Talks Continue
Speaking to the Guardian, Shadow Brexit Secretary, Sir Keir Starmer said that a cross-party Brexit deal would not get through Parliament unless there was another public vote.
There have been reports of little apparent headway during the discussions which have been taking place for more than a month.
The Shadow Brexit Secretary added that he would not be opposed to ending the talks as soon as this week if the Prime Minister did not budge on her ‘red lines.’
However, analysts have suggested that because cross-party talks are continuing, it has prevented Sterling from suffering losses.
Pound New Zealand Dollar Outlook: Will the GBP/NZD Exchange Rate Fall as NZ Visitor Arrivals Rise?
Looking ahead to this evening, the New Zealand Dollar (NZD) could rise against the Pound (GBP) following the release of the NZ visitor arrivals figures.
If data reveals that the number of visitors to New Zealand in March has jumped more than forecast, the ‘Kiwi’ could find some support.
On Tuesday, Sterling could rise following the release of the UK ILO unemployment rate.
If unemployment continues to remain at multi-decade lows, the Pound New Zealand Dollar (GBP/NZD) exchange rate could rise.