Although Monday 12th October 2017 saw the NZD/GBP painting struggle, there has been a slight spike made in the afternoon.
GBP had previously dipped in value after proposals put forward by the Prime Minister has been rejected by the European Union.
There was also a lack of faith in how Brexit was performing following the resigning of Transport Minister, Jo Johnson. The resignation was followed by a statement that highlighted the reason for the resignation was due to his disagreement with how Brexit was progressing, believing current proposals would be detrimental the economy.
Recent reports state that Chief Negotiator Michel Barnier has been advising ministers from other EU states that the outline of a Brexit deal was in place.
Although there has been a series of positives during the Brexit talks, there is still an underlying sense of uncertainty, so as news develops the pendulum could swing either way in relation to GBP.
Despite there being good news surrounding Brexit, there is still a lot of uncertainty as critics continue to raise objections surrounding the proposals put forward.
NZD Shows Positive Gains
NZD was in a much better position in comparison to pound sterling, which is due to the bout of good news New Zealand had received last week.
A job market report showed that New Zealand had enjoyed an impressive third quarter, with only New Zealand’s labour costs falling short.
There was also a surge in employment which rose to 1.1 percent, which was higher than the 0.5 percent that was predicted. Key unemployment data also showed that there had been an improvement.
It was forecast that New Zealand would worsen from 4.4 percent to 4.5 percent. The actual figures were 3.9 percent, again surpassing the initial prediction.
Future of NZD/GBP Will Depend on Brexit Outcome
As there is little in the way of upcoming news surrounding NZD, the NXD/GBP pairing is likely to be judged on the upcoming Brexit developments.
Although recent talks have been positive, there is still no positive decision in place, which means there is still a lot of uncertainty in relation to GBP.
Even if the European Commission does agree a deal in relation to Brexit, there is still a chance that opponents from within the party could voice disagreement with the plan, potentially leading to more delays.
GBP could recover should data surrounding inflation be positive, but for the most part, the outcome of GBP looks to be influenced heavily by the upcoming Brexit developments.