News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Heads Up:🇰🇷 Consumer Confidence (OCT) due at 21:00 GMT (15min) Previous: 103.8
  • RT @therecount: In a 17-0 vote with 1 abstention, the FDA advisory committee approves the use of Pfizer's COVID vaccine for children aged 5…
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.19% Gold: -0.80% Silver: -1.66% View the performance of all markets via
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.56%, while traders in Wall Street are at opposite extremes with 74.17%. See the summary chart below and full details and charts on DailyFX:
  • AMD Earnings Summary REV. $4.3B vs. EST. $4.12B EPS: $0.73 vs. EST. $0.67 $AMD
  • Yikes.
  • Twitter Earnings Summary REV. $1.284B vs. EST. $1.285B EPS: ($0.54) vs. EST. $0.15 $TWTR
  • Hefty beat from Google as well. After hours reaction thus far also tepid. Not looking good for the underlying sense of enthusiasm that has carried markets to record highs these past few days despite a lack of tangible data
  • Google (Alphabet) Earnings Summary REV. $65.12B vs. EST. $63.39B EPS: $27.99 vs. EST. $23.50 $GOOGL
  • Clean beat on top and bottom line, but Microsoft's immediate response is very tame at +0.3% after hours
GBP/NZD 1Q Forecast: Long GBP/NZD as Competing Sterling and Kiwi Climb Shifts in 2021

GBP/NZD 1Q Forecast: Long GBP/NZD as Competing Sterling and Kiwi Climb Shifts in 2021

Martin Essex, MSTA, Analyst

GBP/NZD 1Q Forecast: Long GBP/NZD as Competing Sterling and Kiwi Climb Shifts in 2021


GBP/NZD was not a currency cross I paid much attention to before 2020 but that changed during the year as I was asked about it repeatedly in my weekly market sentiment webinars. To the surprise of many analysts, 2020 was a better year than was widely predicted for the British Pound, which advanced against the US Dollar after a sharp fall in March and was broadly stable against the Euro in the second half of the year. This was despite the tortuous negotiations between the EU and the UK on their relationship once the Brexit transition period ended.

However, the New Zealand Dollar was even stronger from April onwards, with GBP/NZD falling from around 2.10 to about 1.90 as hopes of a global recovery – prompted by the development of Covid-19 vaccines – rose and lifted demand for “risk on” currencies like the New Zealand and Australian Dollars, both of which are tied closely to the performance of the Chinese economy.

GBP/NZD Price Chart, Daily Timeframe (January 1 – December 3, 2020)

GBP/NZD, GBP/NZD Daily, British Pound New Zealand Dollar Daily Chart IG

Chart prepared by Martin Essex, created with IG

In 2021, however, I would not be surprised if the trend reversed and GBP began to outperform NZD. On the NZD side, the good news of a potential global economic revival has been largely priced in to the markets already. On the GBP side, pessimism remains about how well the UK will survive outside the EU so there is scope for the UK economy to perform better than widely expected and therefore for the Pound to strengthen further. Long-term forecasting is always difficult but I see no reason why GBP/NZD should not climb back to 2.10 and potentially strengthen even further.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.