Pound to New Zealand dollar exchange rate: Sterling set to SURGE in next five days
CURRENCY forecasts suggest that the pound to New Zealand dollar exchange rate will hit 1.81 in the coming week.
Pound to New Zealand dollar: Sterling set to surge in the next five days
Pound sterling will strengthen against the New Zealand dollar over the next five days, according to foreign exchange experts.
The exchange rate is currently 1 to 1.775 – up 0.94% from yesterday’s closing rate.
This upward trend is set to continue, with the rate expected to break 1.81 in the next five days.
The blow to the pound as a result of the talk of a “hard Brexit” has since been softened by the proposal that there be a “transitional” period as the UK leaves the European Union.
The New Zealand dollar may weaken due to several factors
This upward trend is set to continue, with the rate expected to break 1.81
This would see Britain pay for access to trade within the EU while the final Brexit plan is being negotiated.
However, Prime Minister Theresa May has not given any information about how this interim arrangement might look in practice.
Any further talk of Brexit this week could affect the exchange rate, either negatively or positively.
The rising GBP to NZD forecast is as a result of both a strengthening pound and a weakening New Zealand dollar.
Pound sterling to NZD exchange rate is forecast to hit 1.81
Sterling has been supported by UK GDP (Gross Domestic Product) data for the Q3 period – July, August and September – that was revised from a 0.5 per cent to a 0.6 per cent growth.
GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
This economic growth defied gloomy forecasts after Brexit, which predicted only 0.3 per cent growth in this period.
Coupled with this, there a number of issues impacting negatively on the NZD.
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There are worries of a slowdown from New Zealand’s key trading neighbours, Australia and China, in 2017.
Plus there are concerns about trade protectionism in the United States when Donald Trump is inaugurated as the President this year.
New Zealand benefited from low interest rates in the US, but now American interest rates are rising again, leading the NZD to sharply decline against the USD.
This news that the pound is likely to surge against the NZD comes after the forecast that sterling will likely slump against the US dollar in 2017.