WILLING TON: The Pound to New Zealand Dollar exchange rate has seen a moderate decline on 4thApril, following the news that the UK construction sector has contracted in March.
Looking ahead, the Pound to New Zealand Dollar exchange rate could see further losses on the release of PMI data on 5th April.
The latest manufacturing PMI showed unexpected growth, but as mentioned above the latest construction PMI showed sector contraction during March.
The last UK PMI reading of the week will also be the most important of the three, consisting of a measure of services sector activity during March.
The UK services sector is the largest single contributor to UK economic growth, so any signs of a slowdown can have major negative impact on the Pound’s value.
With that in mind, a forecast-matching services PMI slowdown on 5th April could trigger noticeable Pound losses.
Looking further ahead, there is a chance of a Pound to New Zealand Dollar exchange rate recovery on an Irish border breakthrough.
The status of the border after Brexit remains unresolved, with UK and EU officials advocating alternate solutions to the situation.
The last update was the EU’s request for the UK to provide its own solution to the problem; if this is forthcoming in the near-term then the Pound could rally.
Pressure is building for a viable solution to be found to the problem, given that Brexit talks are supposed to be ‘officially’ concluded by October 2018.
