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Pound to New Zealand Dollar Outlook: UK’s Budget Looms

Yesterday’s high: NZ$1.9512

Yesterday’s low: NZ$1.9359

GBP/NZD Declines on Disappointing Borrowing Stats

The Pound failed to rise against a resilient New Zealand Dollar yesterday, seeing a -0.5% drop despite negative NZ news.

Sterling was dragged down by UK domestic data, which showed a greater-than-expected expansion of the borrowing deficit in October.

New Zealand Dollar traders were largely unfazed by a decline in global dairy prices, leading to NZD/GBP gains.

The Global Dairy Trade price index fell by -3.4%, having previously dropped by -3.5% in early November.

NZD Outlook: Will Hammond’s Budget cause Pound Slump?

The Pound could drop sharply against the New Zealand Dollar later today, when Philip Hammond delivers his much-anticipated November budget.

Brexit is a major factor in UK economic forecasts, so if Hammond believes that the country will struggle during another year of talks then the Pound could decline.

Any NZD/GBP gains may prove short-lived, however. NZ retail sales stats are out late on Wednesday and analysts predict a slowdown in the third quarter.

Key Events

22nd November

12:30 UK Autumn Budget

21:45 NZ Retail Sales

23rd November

09:30 UK GDP Growth Rate

09:30 UK Business Investment

21:45 NZ Balance of Trade

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To keep up to date with the New Zealand Dollar, visit the NZD blog in our Currency News section.

Joe Mayhew

Senior Currency Broker
T: 01442 892 060

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