Geraldine Collett from our partner Halo Financial provides further in-depth info for our NZ candidates.
GBP/NZD entered 2021 on the back foot due to the crippling second wave of COVID-19 in the UK. NZD/GBP was one of the best performing currencies at the start of the year, thanks to the NZ government’s successful handling of the COVID crisis and optimistic comments from the Reserve Bank of New Zealand (RNBZ).
Sterling found strong support in April after the UK turned its back on the pandemic and raced ahead in the COVID vaccine rollout. However, concerns over inflation, new COVID variants and comments from central banks triggered plenty of volatility in the currency pair.
But GBP/NZD has stormed higher in July, thanks to the removal of all COVID lockdown restrictions in the UK, the more cautious trading environment, triggered by the spike in Delta variant cases and seasonal quirks. NZD tends to lose value against GBP heading into August, making now the ideal time to place international currency orders.
GBP/NZD has slipped back slightly from hitting $2 to £1 yesterday - an 11 month high! As we write the rate sits just under $2. However, it is eyeing further gains! If the UK’s recovery outlook continues to improve, the currency pair could rise comfortably above the NZD 2.00 level in the coming days. UK COVID cases have fallen for seven straight days now, which has supported GBP across the board.
Although the US Federal Reserve’s cautious comments helped lift NZD in overnight trade, concerns over China’s stock market sell-off and rising caseloads in the Asia-Pacific region has limited upside potential in NZD/GBP heading into August. While NZ has successfully tackled COVID-19, the government has maintained strict border policies which, at a time, when countries are reopening international travel is now negatively impacting NZD/GBP.
If you’re not sure whether to transfer your money now or wait even longer, talk to Halo Financial, who can provide guidance and insights on what the GBP and NZD are doing!
Or simply register with Halo to keep up to date with NZD/GBP or other worldwide exchange rates.
Phone: +44 (0) 20 7350 5470
* mention Caroline from Head Medical New Zealand to receive preferential exchange rates and no Halo fees!