Friday’s high: NZ$1.9536
Friday’s low: NZ$1.9233
Varadkar Threats Pressure Pound (GBP)
The Pound New Zealand Dollar (GBP/NZD) exchange rate struck its highest levels since the Brexit referendum at the tail end of last week’s session as investors flocked to Sterling as they abandoned the US Dollar is light of political developments in Washington.
Sterling failed to hold on to these gains however, closing the week around a cent down from its best levels as Ireland’s Prime Minister Leo Varadkar threatened to frustrate Brexit negotiations unless guarantees are made over the country’s border with Northern Ireland.
At the same time, the ‘Kiwi’ was weakened early on Friday by the release of New Zealand’s latest Manufacturing PMI, as it revealed a slight slowdown in factory activity last month.
NZD Outlook: Sterling to Slide as Investors Await Budget?
Looking at the coming week, the Pound may be forced to relinquish some more ground in the first half of the session as investors shy away from the currency as they await Chancellor’s Philip Hammond’s budget on Wednesday.
Meanwhile the New Zealand Dollar may struggle tomorrow following the latest Global Dairy Auction, with another fall in prices likely to greatly limit the appeal of the ‘Kiwi’.
10:30 UK Public Sector Borrowing Oct
15:30 NZ Global Dairy Auction
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