Last week’s high: NZ$1.8940
Last week’s low: NZ$1.86291
NZD Exchange Rates Fluctuate in Response to US Inflation Data
The Pound New Zealand Dollar exchange rate approached a three-month low last week as markets reacted to some disappointing trade data from the UK.
Figures published by the ONS revealed that the UK’s trade deficit ballooned to -£2.8bn in November. The previous month’s figure was also revised from -£1.4bn to -£2.2bn.
However, the New Zealand Dollar was forced to relinquish some of the week’s gains on Friday as investors became increasingly risk adverse ahead of the release of the latest US inflation figures.
NZD Outlook: Sterling to Rally on Inflation Figures?
Looking to the week ahead, the Pound may strengthen on Tuesday as economists forecast that inflation will have dipped from 3.1% to 3% in December.
While this may diminish the pressure on the Bank of England (BoE) to raise interest rates, investors are hopeful that this will help to close the gap with wage growth and allow consumer spending to rebound in 2018.
Meanwhile, the focus for NZD investors in the first half of the week be the latest Global Dairy Auction on Tuesday, with another uptick in dairy prices possibly lifting the New Zealand Dollar.
09:30 UK Inflation Rate Dec
14:30 NZ Global Dairy Auction
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Senior Currency Broker
T: 01442 892 060