The Pound to New Zealand (GBP/NZD) exchange rate fell today as the New Zealand Dollar was bolstered by a hawish tone from the Reserve Bank of New Zealand (RBNZ).
At the time of writing the pair are currently trading at around NZ$1.9163.
Pound (GBP) Loses Traction as Lockdown Easing Excitement Dies Down
The Pound lost traction against the New Zealand Dollar today as markets calmed following on from the UK Government’s roadmap out of lockdown announcement on Monday.
A slowdown in the vaccination rollout across the UK has been reported for two consecutive days, as daily vaccinations are now below the government target of 200,000.
However speaking to UK television this morning, Professor Jonathan Van-Tam downplayed any concerns, saying:
‘There are always going to be supply fluctuations. These are new vaccines, by and large the manufacturers have not made them or anything like them before.’
Education Secretary Gavin Williamson also commented on any issues with supply chains:
‘There will always be some days where it dips lower. I have every confidence it will be rebounding back very shortly.’
Almost 18 million people in the UK have received their first dose of a coronavirus vaccine as of the start of this week.
New Zealand Dollar (NZD) Bolstered by Interest Rate Decision
The New Zealand Dollar was supported today from the RBNZ decision to keep interest rates at 0.25%, in the first decision of the year.
Ben Udy, Australia and New Zealand Economist at Capital Economics, commented on the banks decision:
‘The Reserve Bank of New Zealand sounded dovish when it left policy settings unchanged today, but we still expect the Bank to begin increasing rates next year.’
‘While the Bank stressed its willingness to provide further stimulus and its ability to implement negative rates, the Bank’s forecast now show less stimulus is likely to be needed.’
Pound to New Zealand Dollar Outlook: New Zealand Business Confidence in Focus
New Zealand Dollar investors will be focusing on the ANZ’s Final Business Confidence of February, which is forecast to have grown to 11.8, an increase which could bolster the New Zealand Dollar further.
Pound traders will be awaiting Bank of England (BoE) Haldane’s speech tomorrow afternoon, with further hawkish commentary surrounding UK inflation proving positive for GBP.
This afternoon will also see the BoE’s Monetary Policy Report Hearings.
Any further optimism about the outlook for the UK’s economic recovery could push GBP/NZD movement.