NZD slips against pound as British MPs prepare to vote on no deal Brexit

Thursday 14th March 2019

The New Zealand dollar slipped against the British pound as markets expect the UK parliament will vote to not pursue a hard "no deal" Brexit this morning.

The kiwi was trading at 51.81 British pence at 8am in Wellington from 52.27 British pence at 5pm in Wellington. It was at 68.52 US cents from 68.39 US cents.

British MPs are about to vote on whether to leave the European Union without a deal on March 29. If they vote no - as expected - they will then vote tomorrow on whether the leaving date of March 29 should be pushed back. The EU must also approve any extension.

"The stakes are high but the market expects this ‘no deal’ vote to fail but time is ticking as the UK is expected to leave the EU in 16 days," said ANZ FX/rates strategist Sandeep Parekh.

The kiwi held its gains against the US dollar after February's PPI data there undershot expectations and durable goods orders rose less than they did in the prior month, said Parekh. "The odds are stacking up for a dovish FOMC meeting next week as markets see increasing odds of the Fed remaining on hold for the remainder of the year," Parekh added.

Looking ahead, the focus will be on inflation expectations in Australia and China’s industrial production and retail sales data. The kiwi traded at 96.63 Australian cents from 96.93 Australian cents.

It was at 60.47 euro cents from 60.62 euro cents, at 76.12 yen from 76.93 yen and at 4.5959 Chinese yuan from 4.5896 Chinese yuan. The trade-weighted index was at 74.23 from 74.29.

(BusinessDesk)

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