GBP/NZD has slightly increased since the start of the Wednesday session, but the pair is still showing low volatility.
The price fluctuated within a horizontal channel since Thursday, but it broke it below yesterday and is now moving in a sideways trend.
Currently, one British pound buys 2.0101 New Zealand dollars as of 07.05 AM UTC, up 0.07% so far.
UK Parliament Backs Brexit Deal in Early Voting
GBP has been driven by the UK parliament’s decision to back a Brexit bill for the first time since the referendum took place. Still, UK Prime Minister Boris Johnson is unhappy that lawmakers rejected the tight timeline. Thus, the country’s withdrawal cannot be formally set before the current deadline of October 31. Moreover, the bill can be amended by lawmakers who want changes, as it has to pass through the House of Lords.
Yesterday, EU Council President Donald Tusk recommended EU leaders to delay Brexit until early next year.
“…in order to avoid a no-deal Brexit, I will recommend the EU27 accept the UK request for an extension,” Tusk said via Twitter.
NZ Exports Beat Expectations
The New Zealand dollar found support after the Statistics New Zealand published trade data for September a few hours ago.
Exports rose last month from NZ$4.08 billion to NZ$4.47 billion, up 9.5% and above analysts’ estimates of NZ$4.3 billion. The indicator was driven by an increase in the exports of dairy products (NZ’s largest commodity group) and meat. The exports of dairy products were up $199 million or 28% to $920 million last month, with milk powder accounting for the largest share.
Imports were flat at NZ$5.71 billion from a revised reading of NZ$5.71 billion in August, in line with analysts’ expectations. The indicator fell 2.1% compared to the same period in 2018, driven by a decline in the imports of petroleum and products.
Thus, NZ’s trade deficit came in at NZ$1.242 billion last month, after the NZ$1.565 billion deficit posted in August. This is the third monthly deficit in a row.