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.
12:30 UK Autumn Budget
21:45 NZ Retail Sales
09:30 UK GDP Growth Rate
09:30 UK Business Investment
21:45 NZ Balance of Trade
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