Pound to New Zealand Dollar (GBP/NZD) Exchange Rate Floundering Near Month and a Half Worst

Pound to New Zealand Dollar Exchange Rate Slumps despite ‘Kiwi’ Weakness

Revived no-deal Brexit fears have throttled the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate this week. This is despite the New Zealand Dollar (NZD) seeing fairly weak performance itself in recent sessions.

Since opening this week at the interbank level of 1.97, GBP/NZD was hit and trended lower and lower throughout.

After attempting to steady in the middle of the week, Brexit fears have only intensified. GBP/NZD lost over two cents yesterday alone. At the time of writing on Friday, GBP/NZD is floundering near lows of 1.92 – the worst levels for the pair since late July.

The Bank of England (BoE) will be in focus next week. Brexit developments will also remain a focus for investors.

Pound (GBP) Exchange Rates Remain Gloomy amid Mixed UK Growth Report

This morning saw the publication of Britain’s July Gross Domestic Product (GDP) growth rate report.

The growth data was a little weaker than expected overall. Monthly growth came in at 6.6% rather than the forecast 6.7%, and 3-month-average growth contracted at a worse than expected -6.7%.

Analysts are also concerned that any perceived bounce-back from growth will slow from here.

As a result, this morning’s growth data was not enough to support a Pound (GBP) recovery.

Sterling remains low after days of being sold off amid revived no-deal Brexit fears. Yesterday the Pound fell even further as EU officials and Conservative Party backbenchers continued to criticise the UK government’s plans on the Brexit withdrawal bill.

New Zealand Dollar (NZD) Exchange Rates See Their Own Losses

The New Zealand Dollar (NZD) has reportedly seen its worst performance since May in the past week.

It comes as market risk-appetite evaporates due to various factors. This includes revived no-deal Brexit fears, but also US-China trade tensions, a rout in US tech stocks, and coronavirus second wave jitters.

On top of the market aversion to taking risks over the past week, the New Zealand Dollar has also been hit by speculation that the Reserve Bank of New Zealand (RBNZ) will move towards negative interest rates.

As the New Zealand Dollar is a currency often correlated to market risk and trade-sentiment, RBNZ jitters have only dampened its appeal as investors avoid taking risks this week.

Pound to New Zealand Dollar (GBP/NZD) Exchange Rate Awaits Brexit, BoE News

Despite this week’s relatively quiet calendar, it has been a hectic one for the Pound to New Zealand Dollar (GBP/NZD) exchange rate.

With Brexit uncertainties remaining in focus, the Pound could be in for more high volatility in the coming month. No-deal Brexit fears are likely to remain a focus going forward.

However even if there are no Brexit developments next week, the Pound may still be in for a lot of movement. Many key UK ecostats, as well as the Bank of England’s (BoE) September policy decision, are set for next week.

The BoE could offer its latest comments on the coronavirus and Brexit situations during its policy decision. This has the potential to have a big impact on the Pound’s movement if it is surprising.

Also due next week includes UK job market, inflation and retail sales stats. Overall, it has potential to be a major week for the Pound.

It’ll be a big week for the New Zealand Dollar as well though. Thursday will see the publication of New Zealand’s anticipated Q2 growth rate results.

Of course, global shifts in risk-sentiment and coronavirus news will also influence the Pound to New Zealand Dollar (GBP/NZD) exchange rate.