Market Update: GBP/NZD
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Joined: Dec 2004
Posts: 524
Market Update: GBP/NZD
Hi All,
As requested by a number of BE regulars here's a brief update on what's happening in the currency markets.
Here in Windsor Spring has well and truly sprung and no doubt the recent bout of glorious weather here in the UK is reminding those who are on their way to sunnier climes why they are putting themselves through the lengthy and sometimes stressful emigration process! Good luck to everyone making the move in April.
High & Low of the month:
High: 2.8912 (on the 02/03/09)
Low: 2.4911 (on the 27/03/09)
Difference of cost on £200k:
High: 578,240 NZD
Low: 498,220 NZD
A difference of 80,020 NZD
The Kiwi roared to a two-month high against a broadly softer Pound as improved investor risk appetite and a growing view that the monetary easing cycle in New Zealand was coming to an end supported the high-yielding currency. The NZD brushed off data showing the worst manufacturing sales volumes on record in the fourth quarter, suggesting the New Zealand economy may have contracted by its sharpest rate in more than a decade. Sales fell 5.4% for the fourth consecutive quarter in the three months ended December, the largest fall since the series started in 1994. Following sharp losses in recent weeks, the broad GBP/NZD picture has clearly eroded with the failure to break through the 2.9000 resistance level, triggering a sharp set-back. Little effective support now exists until nearer the 2.47 region.
Last week we learned that New Zealand’s economy contracted by 0.9% in the fourth quarter, the fastest rate of decline since 1992, but investors took comfort from the number being slightly better than market forecasts for a 1.0% drop. In another milestone, the economy contracted in all four quarters of 2008, the longest period of weakness since the current series began in 1987. Economists said the outlook remained bleak as consumers remained cautious and business investment was expected to retreat due to sagging local and global demand.
Central bank rates:
NZD: 3.00% (Next meeting the 30th April)
US: 0.25% (Next meeting the 29th April)
ECB: 1.5% (Next meeting 2nd April)
Going forward most industry analysts expect continued volatility. No surprises there!
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely are to make your money go as far as you do.
Best Regards,
Mark Bodega
Director - HiFX
As requested by a number of BE regulars here's a brief update on what's happening in the currency markets.
Here in Windsor Spring has well and truly sprung and no doubt the recent bout of glorious weather here in the UK is reminding those who are on their way to sunnier climes why they are putting themselves through the lengthy and sometimes stressful emigration process! Good luck to everyone making the move in April.
High & Low of the month:
High: 2.8912 (on the 02/03/09)
Low: 2.4911 (on the 27/03/09)
Difference of cost on £200k:
High: 578,240 NZD
Low: 498,220 NZD
A difference of 80,020 NZD
The Kiwi roared to a two-month high against a broadly softer Pound as improved investor risk appetite and a growing view that the monetary easing cycle in New Zealand was coming to an end supported the high-yielding currency. The NZD brushed off data showing the worst manufacturing sales volumes on record in the fourth quarter, suggesting the New Zealand economy may have contracted by its sharpest rate in more than a decade. Sales fell 5.4% for the fourth consecutive quarter in the three months ended December, the largest fall since the series started in 1994. Following sharp losses in recent weeks, the broad GBP/NZD picture has clearly eroded with the failure to break through the 2.9000 resistance level, triggering a sharp set-back. Little effective support now exists until nearer the 2.47 region.
Last week we learned that New Zealand’s economy contracted by 0.9% in the fourth quarter, the fastest rate of decline since 1992, but investors took comfort from the number being slightly better than market forecasts for a 1.0% drop. In another milestone, the economy contracted in all four quarters of 2008, the longest period of weakness since the current series began in 1987. Economists said the outlook remained bleak as consumers remained cautious and business investment was expected to retreat due to sagging local and global demand.
Central bank rates:
NZD: 3.00% (Next meeting the 30th April)
US: 0.25% (Next meeting the 29th April)
ECB: 1.5% (Next meeting 2nd April)
Going forward most industry analysts expect continued volatility. No surprises there!
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely are to make your money go as far as you do.
Best Regards,
Mark Bodega
Director - HiFX