Windsor2

Last month we saw conflicting reports on the state of the UK economy with the IMF giving the Government rare praise for their deficit reduction plan; whereas Adam Posen, a MPC member, spoke of the requirement for more quantitative easing in order for the UK to avoid a Japanese style slump.
In New Zealand borrowing rose in August as demand for household credit offset a fall in consumer financing amid signs of slowing in the economic recovery. In New Zealand interest rates stand at 3.25% compared to 0.5% in the UK making NZD more attractive to invest in. However the real driver of the Kiwi will be investor attitudes to risk. Stock markets are recovering strongly from recent lows, which help the higher yielding currencies as investors pull money out of the US dollar and place riskier bets in more volatile currencies. Even during the recent stock market weakness the Kiwi didn’t suffer much.


Current Central Bank Rates:

NZ (Reserve Bank): 3.25%
UK (Bank of England): 0.50%

GBP/NZD Highs & Lows of September:

High: 2.1988
Low: 2. 0973

A movement of: 4.84%

Difference this would make on £200k

High: NZD 439,760
Low: NZD 419,460

A difference of NZD 20,300


All of the information above can be explained clearly by your personalised 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