Live and Historical GBP/NZD Rates
This chart represents the value of the British pound (GBP) against the New Zealand dollar (NZD) – that is how many NZD will purchase one pound. GBP is a major currency, but NZD is not. Together they form neither a commodity pair nor a major pai.
The British Pound
GBP is the longest running currency on the market today and it also wins the prize for the most valuable. Controlled by the Bank of England in London, the United Kingdom’s currency is literally at the center of the forex trading world. Major trade partners for the United Kingdom include the United States, Ireland, and the Netherlands. So far, the United Kingdom has been consistently reticent to changing over to the euro, but if the inflation experienced at the beginning of 2008 becomes a more frequent happening perhaps the Bank of England will begin to reconsider.
The New Zealand Dollar
The New Zealand dollar is sometimes referred to as the “kiwi” or the “kiwi dollar” because of the large Kiwi bird pictured on some of its denominations. NZD is number twelve on the “most traded currency” list. The later portion of the 2000s was especially difficult as New Zealand felt the pull of the downward spiral of many global economies. Nevertheless, NZD rallies to finds strength in its greatest export partners – Australia and the United States. New Zealand’s principal exports are in the food processing, agriculture, and service sectors. The currency is a good benchmark for Asian economies, but without the strong commodity dependence of Australia.
Like GBP/AUD, these currencies share historical ties but are separated by a wide geographic and trading distance. Naturally, GBP most closely connects to the Eurozone, and NZD represents Australia and the Asian economies. New Zealand is also a small and relatively dependent economy. As such, this pair generally correlates to GBP/JPY and GBP/AUD, but it can also provide a good diversification for one of the two larger pairs. Agriculture prices give occasional opportunities for profit. The best opportunities have been through instabilities in either the pound or the Kiwi dollar-during periods of heavy inflation. It has not generally been used for carry trades.