Windsor2

Last week the economic data came in pretty close to expectations reflecting the neutral state of the economy, far from the some of the dire reports from the press. Inflation remained at 3.1% in September and the trade balance improved to £8.2bn and most importantly the employment sector remains resilient with the unemployment rate dipping to 7.7%.

In NZ there were more concerns over a strong Kiwi from PM Key as he stated that recent Kiwi gains are starting to create concerns for exporters. The Kiwi strength reflects partly the higher interest rates in New Zealand compared with countries like the US & Japan which puts the NZ Government and the RBNZ in very difficult positions. The RBNZ Governor Bollard while signalling that rates need to move to neutral level (rate hikes), said the pace will be slower due to the fragile economy.

GBP/NZD movement – High’s & Low’s of last week (11th October– 15th October)

High’s: 2.1254
Low's: 2.0735
A movement of 2.50%

Difference on £200,000

High: 425,080
Low: 415,070

Difference of: 10,010

Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.

Regards


Mark Bodega
Director – HiFX