President of European Council Donald Tusk’s comments suggesting the UK’s only option was a ‘Hard Brexit’ softened Pound Sterling (GBP) exchange rates last week.
- The Pound to New Zealand Dollar exchange rate today (18/10/16): -0.05pct at 1.70311.
- The New Zealand Dollar to Pound exchange rate today: +0.05% at 0.58716.
- ’Hard Brexit’ Comments Weaken GBP/NZD Exchange Rates:sterling falls
- NZD Higher on Chinese Data:Strong inflation results for September
- Donald Tusk Warns UK Over Brexit: No separation of single market access and freedom of movement
- GBP/NZD exchange rate forecast:Will data finally drive Pound Sterling movement again?
The Pound New Zealand Dollar (GBP NZD) exchange rate continued to tumble lower throughout Monday afternoon, regularly hitting new record-lows and remaining near these lows as Sterling lacked the support to hold its ground.
GBP/NZD was down over half a cent throughout the day, and could be set to extend these record-lows even further on Tuesday if New Zealand CPI and dairy prices impress investors.
European Council President Donald Tusk recently commented that the UK only had a choice between ‘Hard Brexit or no Brexit’, weakening GBP/NZD exchange rates recently.
Attacking the notion that the UK could gain access to the single market without accepting freedom of movement, Tusk commented;
‘That was pure illusion, that one can have the EU cake and eat it too. To all who believe in it, I propose a simple experiment. Buy a cake, eat it, and see if it is still there on the plate.’
‘There will be no cakes on the table, for anyone. There will be only salt and vinegar.’
Latest Pound / New Zealand Dollar Exchange Rates
On Tuesday the Pound to New Zealand Dollar exchange rate (GBP/NZD) converts at 1.703
The live inter-bank NZD-GBP spot rate is quoted as 0.587 today.
The live inter-bank NZD-AUD spot rate is quoted as 0.936 today.
The live inter-bank NZD-CAD spot rate is quoted as 0.94 today.
Today finds the new zealand dollar to us dollar spot exchange rate priced at 0.719.
Please note: the FX rates above, updated 18th Oct 2016, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
New Zealand Dollar X Rates Get Boost on Chinese Data
After having unnerved investors on Thursday, Chinese data on Friday helped to boost the New Zealand Dollar after showing stronger-than-expected inflation.
Strong Chinese inflation helped to boost the New Zealand Dollar recently after September’s figures showed price growth accelerated from 1.3% to 1.9% against forecasts of 1.6%.
Producer prices also registered their first growth in 54 months, helping to ease fears that the country is heading for a hard landing.
Experts had forecast the rate of decline in producer prices would slow from -0.8% to -0.3%, but instead prices saw 0.1% growth, helping to improve China’s outlook and raise demand for the New Zealand Dollar.
British Pound (GBP) Has Potential to Recover
With plenty of data ahead and GBP exchange rates seemingly hitting a floor, there is potential for the Pound to begin a recovery.
BNP Paribas claims that there is room for upside Pound Sterling movement;
‘We continue to see scope for the GBP to bounce on positive news surprises given extreme short positioning and very cheap GBP valuations.’
This could materialise over the coming week thanks to the approaching slew of UK data, including Tuesday’s consumer price index, Wednesday’s earnings and unemployment reports, Thursday’s retail sales and Friday’s government borrowing figures.
Pound Sterling has been increasingly decoupled from data since the possibility of a ‘Hard Brexit’ continued to solidify over the past couple of weeks but, now that GBP exchange rates appear to have hit psychological support, a packed docket of data could pressure the Pound into a recovery if the figures are positive.
New Zealand Dollar (NZD) Exchange Rates Forecast; Focus to Switch from Domestic to Overseas Data
A busy start to the week in terms of data could see New Zealand Dollar exchange rates strengthen, with consumer prices and the latest global dairy auction on Monday and Tuesday respectively.
The presence of September US consumer prices on Tuesday could complicate New Zealand Dollar movement, however.
Wednesday will see the release of China’s third-quarter GDP figures, which could significantly boost the New Zealand Dollar if they do not suggest the economy is still slowing.