GBP/NZD June Currency Update
Jul 8th 2010, 12:50 am
#1
BE Enthusiast
Thread Starter
Joined: Dec 2004
Posts: 524
GBP/NZD June Currency Update
Retail Sales slipped for the second time in three months as households chose to conserve cash as the country only gradually drags itself out of recession. Income tax cuts in October and improved employment conditions should help to boost consumer confidence and demand in coming months despite further interest rate increases from emergency levels being still very much on the cards.
The NZD was able to climb steadily in the early part of June but further gains will now start to become harder to sustain unless the global outlook improves significantly.
GDP grew by 0.6% to record a 4th straight quarterly increase. Growth was driven by manufacturing and wholesale trade that was centred on rising dairy, logs and metal product exports. A positive outlook for the remainder of the year will underpin the likely RBNZ’s intention to steadily tighten monetary policy and the market is pricing an 80% chance for a consecutive rate hike.
Similar to the AUD story, the Kiwi Dollar came under pressure at the end of the month, as investor shunned risky assets, with the commodity currencies taking an absolute battering. Reasons to sell the NZD were confirmed by weak NZ data with NBNZ Business Confidence dropping to 40.2 (prev 48.2), Building Consents plunging -9.6% (prev +8.5%) and ANZ Commodity Prices showing a decline of 1.2%. The market will remained focused on equity and commodity markets in order to gauge the NZD’s likely direction
Current Central Bank Rates:
BOE (Bank Of England): 0.5%
RBNZ (Reserve Bank New Zealand): 2.75%
GBP/NZD Highs & Lows of June:
High: 2.2036
Low: 2.0744
A movement of: 6.23%
Difference this would make on £200k
High: NZD 440,720
Low: NZD 414,880
A difference of NZD 25,840
All of the information above can be explained clearly by your personal dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected]
Kind regards,
Mark Bodega
Director - HIFX
The NZD was able to climb steadily in the early part of June but further gains will now start to become harder to sustain unless the global outlook improves significantly.
GDP grew by 0.6% to record a 4th straight quarterly increase. Growth was driven by manufacturing and wholesale trade that was centred on rising dairy, logs and metal product exports. A positive outlook for the remainder of the year will underpin the likely RBNZ’s intention to steadily tighten monetary policy and the market is pricing an 80% chance for a consecutive rate hike.
Similar to the AUD story, the Kiwi Dollar came under pressure at the end of the month, as investor shunned risky assets, with the commodity currencies taking an absolute battering. Reasons to sell the NZD were confirmed by weak NZ data with NBNZ Business Confidence dropping to 40.2 (prev 48.2), Building Consents plunging -9.6% (prev +8.5%) and ANZ Commodity Prices showing a decline of 1.2%. The market will remained focused on equity and commodity markets in order to gauge the NZD’s likely direction
Current Central Bank Rates:
BOE (Bank Of England): 0.5%
RBNZ (Reserve Bank New Zealand): 2.75%
GBP/NZD Highs & Lows of June:
High: 2.2036
Low: 2.0744
A movement of: 6.23%
Difference this would make on £200k
High: NZD 440,720
Low: NZD 414,880
A difference of NZD 25,840
All of the information above can be explained clearly by your personal dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected]
Kind regards,
Mark Bodega
Director - HIFX
