Forecasts for GBP to NZD
Based on recent forecasts and market updates, FX analysts have signaled a turning point for the British Pound (GBP) against the New Zealand Dollar (NZD). HSBC, which had previously been bullish on the GBP, now believes that the rally for the currency has played out and anticipates a reversion lower in the coming months. This change in sentiment is driven by factors such as a turn in consumer confidence in the UK and Eurozone, which often precede macroeconomic underperformance.
Furthermore, the GBP has been heavily influenced by the UK's decision to leave the European Union (Brexit). Uncertainty surrounding ongoing post-Brexit negotiations and the economic impact of the UK's departure have led to significant fluctuations in sterling exchange rates. Additionally, the GBP/USD exchange rate, known as "Cable," tends to exhibit high volatility due to various factors such as economic data releases, political events, and changes in central bank policy.
In terms of specific price data, the GBP/NZD exchange rate currently stands at 2.0464, which is 2.3% below its 3-month average of 2.0938. Over the past few months, the exchange rate has remained relatively stable within a range of 5.2%, trading between 2.0451 and 2.1519.
Given the correlation between NZD/USD and AUD/USD, as well as their dependency on commodity markets, the New Zealand Dollar has also experienced weakness against the US Dollar due to the risk-off trade encouraged by the Ukraine situation and a hawkish Federal Reserve.
