GBP NZD Long Term

[GTM 3442]

My opinion is that political certainty/uncertainty can initiate or reverse trends, while economic news can produce variations within trends.

And that large parliamentary majorities act to multiply the number of factions within the governing party, making political management more complex. You can see this in the other day's cabinet reshuffle - the rewards of loyalty and the purge of the disloyal elements. But give it a few years, and there will arise factions which need to be placated.

I'm coming to think that this year won't be a good one for the UK, the GBP, and UK markets, but also that it won't be a particularly bad one either.

I think I'll sit there with my thumb up my *rse waiting for the GBP/USD to move outside the 1.275-1.325 range, quietly accumulating pounds and putting those pounds to work outside the UK.

Good job I trim my nails regularly. . .

[winner69]

1) Some say the exchange rate reflects the relative economic performance of the two countries

2) It's also said that post-Brexit and various political turmoils over the years the British economy has struggled and some say stuffed

Below GBPNZD chart for last 5 years. Last time I was over there was 5 years ago and the rate was in low 50's

About the same today - does that mean that the NZ economy is about as stiffed as the UK economy

[Bjauck]

1) Some say the exchange rate reflects the relative economic performance of the two countries

2) It's also said that post-Brexit and various political turmoils over the years the British economy has struggled and some say stuffed

Below GBPNZD chart for last 5 years. Last time I was over there was 5 years ago and the rate was in low 50's

About the same today - does that mean that the NZ economy is about as stiffed as the UK economy

Turn of the century 2000, One NZD bought about 30p, today it buys 51p. Immediately before the Brexit referendum, in May 2016, One NZD bought about 45p. So on the face of it, The current generation of British pollies have been stuffing up the British currency (and economy?) more than their Kiwi counterparts.

[clearasmud]

Turn of the century 2000, One NZD bought about 30p, today it buys 51p. Immediately before the Brexit referendum, in May 2016, One NZD bought about 45p. So on the face of it, The current generation of British pollies have been stuffing up the British currency (and economy?) more than their Kiwi counterparts.

Yes the GBP was very strong while the NZD was very weak due largely I think to the terms of trade.
Today both the GPB and NZD are at slightly weak levels comparatively,NZD slightly stronger than GBP according to numbeo's average wage calculation.