Pound Sterling climbs further ahead of the New Zealand Dollar
Poundsterlinglive.com predicts that it will continue to rise towards a target of 1.8300. Recent data has shown a narrowing of the trade deficit and analysts at Commonwealth Bank of Australia expect the gap to disappear at some point in the next year with increased exports due to the lower valued currency. They expect New Zealand to start to show a surplus again as well.
A trade surplus is supportive for a currency as it indicates net demand for it.
The recent deficit was caused by falling prices and volumes for fruit and dairy products but this is forecast to turn around by Commonwealth, and this will probably be mildly supportive for the currency.
source: poundsterlinglive.com
