GBP/NZD Exchange Rate Steadies despite Labour Pushing to Prevent a ‘Chaotic’ Brexit
UPDATE: The Pound steadied against the New Zealand Dollar today as hopes rose regarding the Labour Party’s effort to block a no-deal Brexit.
Brexit Secretary Steve Barclay, however, criticised Labour’s motion, saying:
‘[Sir Keir Starmer, the shadow Brexit Secretary] keeps telling me how much he doesn’t like a blind Brexit, and yet what we have before the House is in essence, a blind motion.’
Boris Johnson has also launched his campaign to become the leader of the Conservative Party today, pledging to see the UK leave the EU by 31 October.
Mr Johnson said:
‘I am not aiming for a no-deal outcome, I don’t think we can end up with any such thing. But it is only responsible to prepare vigorously and seriously.’
Meanwhile, US-China trade tensions have continued to weigh on the risk-averse ‘Kiwi’, with US President Donald Trump saying yesterday that he was ‘holding up’ on a trade deal with China.
Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises as NZ Economic Sentiment Sinks on Live Animal Export Ban Fears
The Pound New Zealand (GBP/NZD) exchange rate has risen steadily today and is currently trading around NZ$1.939 on the inter-bank market.
The New Zealand Dollar (NZD) struggled against the Pound (GBP) following concerns that New Zealand could ban one of its major exports, live cattle.
New Zealand’s Agriculture Minister Damien O’Conner, commented:
‘It’s a complex area and there are a number of factors Cabinet needs to consider, including public expectation, international trade commitments and the impacts on rural New Zealand. Live exports are a source of income to rural communities, almost $30 million in cattle exports alone last year – but has been dropping in recent years.’
With China being New Zealand’s largest trading partner, today’s Chinese economic data failed to provide any uplift for the ‘Kiwi’, with Chinese consumer price inflation data shrinking to 0.0% – annualised figures, however, remained steady at 2.7%.
GBP/NZD Exchange Rate Edges Higher as Labour Party Pushes to Block Brexit No-Deal
Pound Sterling (GBP) exchange rates, meanwhile, benefited from the UK Labour Party’s efforts to block any potential next Prime Minister’s attempt to force a no-deal Brexit in October.
The motion will be forwarded today, put forward by the shadow Brexit Secretary Keir Starmer.
Mr Starmer commented:
‘MPs cannot be bystanders while the next Tory prime minister tries to crash the UK out of the European Union without a deal and without the consent of the British people… My challenge to MPs who disagree either with a no-deal Brexit or proroguing parliament is to back this motion and act in the national interest.’
Meanwhile Boris Johnson, the current favourite for the next Tory leader, has stepped into the fray once again, agreeing to take questions at his first official leadership campaign outing.
Sterling (GBP) traders, however, are remaining jittery as Mr Johnson is a known hard-Brexiter, and his speech is expected to push forward – deal or no-deal – for an October leaving date.
NZD/GBP Exchange Rate Falls as US-China Trade Tensions Weigh on ‘Kiwi’
US-China trade tensions are holding back New Zealand Dollar (NZD) exchange rates as the relationship between the two economic superpowers soured yesterday, with accusation that China was edging towards using Taiwan as a ‘chess piece’ in securing a deal.
Zhiqun Zhu, a Professor of Political Science and International Relations at Bucknell University, said:
‘Taiwan’s value to the U.S. will only increase as tensions between the U.S. and China escalate.’
GBP/NZD Exchange Rate Forecast: Sterling Could Rise on Successful No-Deal Brexit Block
New Zealand Dollar (NZD) traders will be looking ahead to tomorrow’s release of the NZ business PMI figures for May, which are expected to improve to 54.4.
These will be followed by the NZ food price index figures for May, which, too, are expected to improve, and potentially provide some uplift for the NZD/GBP exchange rate.
Tomorrow will also see Chinese economic data, with ‘Kiwi’ traders holding out hopes for some improvement in the Chinese foreign direct investment figures for May.
Sterling (GBP) traders, meanwhile, will be awaiting tomorrow’s RICS housing price balance figures for May.
The Pound New Zealand (GBP/NZD) exchange rate will remain sensitive to Brexit developments, and if the Labour Party successfully managed to block a no-deal Brexit in October, this could prove Pound-positive as UK markets breathe a sigh of relief.