Pound Sterling New Zealand Dollar (GBP/NZD) Exchange Rate Edged Higher as PM Targets Labour-Held Seats
The Pound Sterling New Zealand Dollar (GBP/NZD) exchange rate rose, leaving the pairing trading at around NZ$2.0084.
The Pound edged higher as traders continued to remain confident the ruling Conservative Party would retain power on Thursday.
Opinion polls continued to show Boris Johnson’s Conservatives remained in the lead. A flurry of polls over the weekend showed the party had a lead of 10 percentage points over Labour.
Added to this, GBP rose as Monday’s poll from Survation showed the gap between the Tories and Labour was 14 points.
Meanwhile, with just three days left, Boris Johnson will target further Brexit-voting Labour-held seats in the north-east of the country.
Added to this, Johnson is also travelling to the south-west where he will warn against voting for the Liberal Democrats.
New Zealand Dollar (NZD) Slumps Ahead of Fresh US Tariffs
The New Zealand Dollar edged lower as fresh US tariffs on Chinese goods are expected to kick in at the end of the week.
On Monday, Beijing said that it hoped to make a trade deal with the US as soon as possible.
Speaking to Reuters at the start of this week, Chinese Assistant Commerce Minister Ren Hongbin stated:
‘On the question of US-China trade talks and negotiations, we wish that both sides can, on the foundation of equality and mutual respect, push forward negotiations, and in consideration of each others’ core interests, reach an agreement that satisfies all sides as soon as possible.’
Meanwhile, at the end of last week risk appetite remained under pressure as White House economic adviser Larry Kudlow noted that while both sides were communicating daily, no face-to-face talks or a signing ceremony between the two leaders had been planned.
Discussing the matter last week, US President Donald Trump noted:
‘We’ll have to see, but right now we’re moving along. On December 15th, something could happen, but we are not discussing that yet. We are having very good discussions with China, however.’
Commenting on US-China tensions, OANDA’s senior market analyst, Jeffrey Halley wrote:
‘The contrasting US and Chinese data should swing the trade negotiation pendulum back to neutral from the Chinese side amongst the worlds trade watchers.
‘One gets the sense that this Sunday’s next round of tariffs on China is no longer the line in the sand it once was perceived to be.’
Pound New Zealand Dollar Outlook: Will NZ Retail Spending Buoy NZD?
Looking ahead, the Pound (GBP) could slump against the New Zealand Dollar (NZD) following the release of UK production data.
If both manufacturing and industrial production slumps further than expected, it will weigh on Sterling.
Meanwhile, the ‘Kiwi’ could edge up following the release of the New Zealand electronic retail card spending.
If spending jumps higher than forecast in November, it could cause the Pound New Zealand Dollar (GBP/NZD) exchange rate to slide.