GBP/NZD is a currency pair that includes the currencies of New Zealand and the United Kingdom. Investors, who mainly work on GBP, speculate on the strengths and weaknesses of currency pairs, setting a comparative value in real-time. Although forex brokers offer many interconnected cross rates for pairs, many traders focus on GBP/NZD.
Pound sterling (GBP) is considered the fourth most popular currency in the world. The leader in the US dollar (USD), euro (EUR) and the yen (JPY), and the pound itself takes third place in general trading.
The British pound became the official currency of the United Kingdom when England and Scotland merged into a single country in 1707. However, the British pound was created as a monetary form in 760. The British pound is the oldest currency in the world, which is still used as a legal currency.
The British pound is considered one of the most expensive currencies in the world, and its exchange rate depends on macroeconomic data on the UK economy, such as the Bank of England interest rate, GDP, inflation and unemployment. In 2002, when the euro became the single currency of most member states of the European Union, the UK decided not to accept it, leaving the pound as its official currency instead. In a referendum in June 2016, British voters in a small majority supported the measure of secession from the European Union and initiated the process, which they called Brexit.
New Zealand dollar - acts as one of the oldest currencies, which switched to a floating exchange rate regime. Initially, the exchange rate depended mainly on the US dollar. This had its explanation - close cooperation between the two countries and the borrowing of management and industrial development strategies. Currently, the New Zealand dollar is mainly affected by export relations in the field of agricultural products, fish farming and the subsequent processing of seafood, as well as in the forestry and forestry industries. Australia, China, the United States, and Japan today are the leading official partners of New Zealand. Almost 70% is exported by obligations fulfilled in the APEC format and aimed at formatting the Pacific region.
The rate of the New Zealand dollar depends on the situation in which the price of agricultural products grown in the country on the commodity exchange is determined. It is essential to say that agrarian results in New Zealand are affected, among other things, by weather conditions. An unfavorable long-term weather forecast for agriculture could lead to a drop in the value of the New Zealand dollar. Also, the change in the Australian dollar affects the value of the New Zealand dollar, so when conducting a comprehensive analysis, pay attention to the macroeconomic data of Australia, which acts as the leading trading partner of New Zealand.
GBP/NZD offers the opportunity to make high profits in a short period. The couple is most active during the Pacific session.
The benefits of this pair include:
The disadvantages are:
You can trade with GBP/NZD because it has a good profit potential with the clearest fluctuations, where support and resistance levels can be easily determined.