Would you care to give me your thoughts on the GBP v NZD over the next 6months please
Dec 22nd 2010, 9:06 pm
#1
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Thread Starter
Joined: Oct 2003
Posts: 38,613
Would you care to give me your thoughts on the GBP v NZD over the next 6months please
Would you care to give me your thoughts or considered opinion on the GBP v NZD over the next 6 months please
Cheers.
Cheers.
Jan 13th 2011, 9:28 pm
#2
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Thread Starter
Joined: Oct 2003
Posts: 38,613
Re: Would you care to give me your thoughts on the GBP v NZD over the next 6months pl
....bump.....
Any thoughts at all? We are trying to make some major decisions here .
Cheers.
Any thoughts at all? We are trying to make some major decisions here .
Cheers.
Jan 17th 2011, 8:38 am
#3
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Re: Would you care to give me your thoughts on the GBP v NZD over the next 6months pl
Strangely, its seems they have no thoughts 
Jan 18th 2011, 2:48 am
#4
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Joined: Oct 2003
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Re: Would you care to give me your thoughts on the GBP v NZD over the next 6months pl
I thought that. 
Jan 19th 2011, 3:55 pm
#5
BE Enthusiast
Joined: Dec 2004
Posts: 524
Re: Would you care to give me your thoughts on the GBP v NZD over the next 6months pl
Good Afternoon BEVS,
Apologies for the late reply, the next six months look to be as follows.
Sterling suffered another very poor year against the New Zealand Dollar during 2010, ending the year down over 10% and at an all time low with £1 buying just NZ$1.99. New Zealand, which is in one of the fastest growing regions of the world, has seen a strong increase in their exports which alongside rising commodity prices and a higher interest rate has kept demand for their currency very high. Sterling is still suffering from the huge confidence knock in the UK economy from the banking crisis back in 2008.
Despite this long term trend of New Zealand Dollar strength, we would be very surprised if Sterling fell another 10% from where it began this year at as the New Zealand Dollar is heavily overvalued against a number of currencies; particularly the Pound. We have actually seen a good bounce for the GBP to NZD rate in the first couple of weeks but this could purely be speculators taking profits on the near record value of the Dollar.
There are of course a number of factors that are yet to be determined for both currencies such as the direction of interest rates which can strongly influence a currencies value. With U.K. inflation still rising (3.7% in December according to data released yesterday) the Bank of England are under pressure to increase rates to contain price rises. This could help Sterling as an increase in a currency’s yield or return makes it more attractive to invest in. Equally, any major global economic shocks or panics that are caused in financial markets or elsewhere can cause commodity prices and commodity based currencies (such as the New Zealand Dollar) to weaken dramatically. Against this backdrop you couldn’t rule out a move back into the 2.20 territory we saw through the Summer last year.
If you do require any more information pleae do not hesitate to give us a call on +441753 859159 or visit our website hifx.co.uk
I hope this helps.
Kind regards
Mark Bodega
Director- HiFX
Apologies for the late reply, the next six months look to be as follows.
Sterling suffered another very poor year against the New Zealand Dollar during 2010, ending the year down over 10% and at an all time low with £1 buying just NZ$1.99. New Zealand, which is in one of the fastest growing regions of the world, has seen a strong increase in their exports which alongside rising commodity prices and a higher interest rate has kept demand for their currency very high. Sterling is still suffering from the huge confidence knock in the UK economy from the banking crisis back in 2008.
Despite this long term trend of New Zealand Dollar strength, we would be very surprised if Sterling fell another 10% from where it began this year at as the New Zealand Dollar is heavily overvalued against a number of currencies; particularly the Pound. We have actually seen a good bounce for the GBP to NZD rate in the first couple of weeks but this could purely be speculators taking profits on the near record value of the Dollar.
There are of course a number of factors that are yet to be determined for both currencies such as the direction of interest rates which can strongly influence a currencies value. With U.K. inflation still rising (3.7% in December according to data released yesterday) the Bank of England are under pressure to increase rates to contain price rises. This could help Sterling as an increase in a currency’s yield or return makes it more attractive to invest in. Equally, any major global economic shocks or panics that are caused in financial markets or elsewhere can cause commodity prices and commodity based currencies (such as the New Zealand Dollar) to weaken dramatically. Against this backdrop you couldn’t rule out a move back into the 2.20 territory we saw through the Summer last year.
If you do require any more information pleae do not hesitate to give us a call on +441753 859159 or visit our website hifx.co.uk
I hope this helps.
Kind regards
Mark Bodega
Director- HiFX
