A lower-than-expected data print from the UK has sent Sterling into free-fall.
The New Zealand Central Bank has the power to influence the exchange rate to a considerable degree, although analysts are divided as to whether it will when it meets on Wednesday.
The Pound-to-New Zealand Dollar has recently surged on the back of rising political risks but those risks may be dissipating, whilst rising interest rates in the UK could propel it higher.
Only time will tell whether Peters’ statements mean an NZ First and Labour coalition, under the stewardship of newly minted Prime Minister Jacinda Ardern, will step back from the policies markets have feared the most.
The New Zealand Dollar weakened substantially on Thursday after the news of the final make-up of the next coalition government raised growth fears.
With charts coloured a decidedly bearish tint and high event risk on the horizon in the form of the eventual cast of the next New Zealand government, the New Zealand Dollar could be about to make some volatile moves.
The New Zealand Dollar is showing signs of weakness possibly prompted by a fresh bout of election anxiety, days before a decision on the composition of the next government looks to be finally made.
The Pound-to-New Zealand Dollar is trending lower as Sterling sells off this morning amidst a clutch of news and data which showed ther currency in a negative light; we look at the next chart levels to watch.
The New Zealand Dollar has been weighed down by a fall in milk prices which lends support to the bullish technical outlook on the GBP/NZD chart.
The Pound-to-New Zealand Dollar pair continues to consolidate between roughly 1.83 and 1.87 in a sort of box-shaped pattern.
The New Zealand Dollar (Kiwi) weakened by over 1.0% as markets opened on Monday morning after an indecisive election result on Saturday.
The Pound to New Zealand Dollar pair is set for an unsteady start on Monday after the potentially volatile New Zealand election on Saturday.
The most likely outcome of the election is a coalition between the largest party, the Nationals, NZF and ACT - and on the margin this would be the better outcome for the New Zealand Dollar.
The Pound drove the GBP/NZD higher in the previous week, as there was little data to impact on the New Zealand Dollar (Kiwi), and several events which pushed up the Pound.
There is little reason to question the uptrend in the Pound-to-New Zealand Dollar our mid-week technical studies suggest.
Rising political risks have recently weighed on the New Zealand Dollar and some analysts see potential for further downside.
The New Zealand Dollar has lost ground over recent sessions despite positive dairy price data, and this was probably as a result of the currency absorbing political risk.
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