Sharechat Logo

NZD falls against British pound on Brexit hopes

Wednesday 27th February 2019

Text too small?

The New Zealand dollar fell against the British pound on increased hopes a no-deal Brexit might be avoided. 

The kiwi traded at 51.95 British pence at 7:50am in Wellington from at 52.38 British pence at 5pm yesterday in Wellington. It was at 68.83 US cents from 68.81 late yesterday.

Markets were cheered after UK Prime Minister Theresa May said she would seek an extension on the March deadline for Britain’s European Union exit, a day after the Labour opposition party said it would support a second referendum.

"Sterling outperformed as political momentum around Brexit continued to shift in favour of ruling out a no-deal Brexit," said ANZ economist Miles Workman.  According to ANZ,  Brexit uncertainty was alleviated after May announced there will be a meaningful vote on the withdrawal agreement on March 12, which will include any concessions the UK gets from the EU. If that fails to pass there will be a vote on leaving the EU with no deal on March 13, said Workman. And if that fails, there will be a vote on extending the deadline for leaving the EU on March 14.

Domestically, investors will be watching for January overseas merchandise trade data due today. Workman said it is "unlikely to make waves" but he is expecting a small surplus, which would see the kiwi lift at the margin against the US. Overall, however, "NZD is likely to be fairly range-bound without more global news," he said. 

The New Zealand dollar was trading at 95.92 Australian cents from 96.10, at 76.18 yen from 76.24, at 60.48 euro cents from 60.56 and 4.6102 Chinese yuan from 4.6070. The trade-weighted index was at 74.25 points from 74.32.

(BusinessDesk)



  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:

NZ dollar becalmed on US-China trade/politics nexus
Govt to pull Infrastructure Commission into Auckland port imbroglio
Wind to displace diesel for Stewart Island power
Eroad's five year target: doubling unit sales
Blinky boxes and gobbledegook: tips for choosing a cyber-security vendor
Govt support for NZME/Stuff merger difficult, not impossible, says Jarden
NZ dollar stalled; US-China trade signals remain mixed
Ryman warns NZ, Australia to take population ageing more seriously
MARKET CLOSE: NZ shares fall as US-China trade concerns weigh on markets; Ryman slips
NZ dollar stalled; US-China trade deal may be postponed

IRG See IRG research reports