Sharechat Logo

NZ dollar little changed near 2-month high vs pound as May speech awaited

Tuesday 17th January 2017

Text too small?

The New Zealand dollar was little changed near a two-month high against the British pound, with trading restrained by the Martin Luther King Jr holiday in the US, ahead of a Brexit speech by UK Prime Minister Theresa May and the latest dairy auction tonight.

The kiwi dollar traded at 58.91 British pence as at 8am in Wellington from 58.98 pence late yesterday. It traded at 70.99 US cents from 70.89 cents.

May is scheduled to deliver a speech on Tuesday in the UK which the Sunday Times reported will spell out her commitment to leaving the European Union, a move that many economists say will hurt the UK economy. The pound dropped to a new three-month low against the greenback overnight, the lowest level since October’s so-called flash crash amid concerns about a 'hard Brexit' which would see the UK losing access to any trade and economic benefits with the EU.

"GBP weakness was the key event into European trading and although lows were posted early in the European day, GBP rebounds were very contained as market’s await Theresa May’s speech tomorrow in which she is expected to provide some outline of the government’s Brexit strategy," Imre Speizer, senior market strategist at Westpac Banking Corp.

He said there was little market reaction to new International Monetary Fund forecasts which project stronger global growth for 2017.

Traders will be watching for Real Estate Institute house sales data today and the GlobalDairyTrade auction tonight, which will follow declines in prices at the previous two sales.

The trade-weighted index rose to 78.22 from 78.07. The kiwi traded at 94.91 Australian cents from 94.86 cents late yesterday. It rose to 4.9008 yuan from 4.8882 yuan and traded at 66.94 euro cents from 66.80 cents. The kiwi was little changed at 81.03 yen from 80.92 yen yesterday. 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky TV chair holds succession plan until Fellet's CEO slot filled
Govt raises GST threshold for online shopping
Exploration ban 'selfish, rich world' approach, MPs told
Mexico's Finaccess dangles 24% premium to buy control of Restaurant Brands
October 18th Morning Report
NZ dollar dips as growing concerns in Europe bolster greenback
MARKET CLOSE: NZ shares gain as A2 calms critics with strong sales
NZ dollar may extend rally on signs of gradual Fed rate increases
Larry Ellison's NZ yacht company key to America's Cup rival
Port of Tauranga eyes record $101mln 2019 profit on cargo growth

IRG See IRG research reports