The GBP/NZD pair departed from the one-month peak during the Asian session, declining by 0.68%. The pair remains sensitive to any news regarding Brexit. UK Prime Minister Boris Johnson secured the approval of European leaders for a no-delay Brexit deal, but he has to pass it through the Parliament vote on Saturday.
Yesterday, GBP/NZD broke a support line of an uptrend that started on October 10. The pair is persuasively looking downward, though this might be only a temporary retreat amid a longer-term uptrend that began in mid-July.
Currently, the pair is fluctuating around 2.017 as of 05.20 AM UTC.
Brexit End in the Hands of DUP
When it comes to Brexit, there is good news and bad news. Yesterday, Johnson met with the European Union (EU) leaders and secured their unanimous approval for a Brexit deal that wouldn’t see another delay beyond the current date of October 31.
However, the Prime Minister has to obtain support at home. On Saturday, the Parliament should pass the deal with at least 320 votes out of 650 seats.
The votes of Northern Ireland’s Democratic Unionist Party (DUP) with its 10 seats will be crucial, but it said it would oppose the current withdrawal agreement, which added to the concerns that the saga will continue beyond the deadline.
The DUP’s position put pressure on the pound, which has lost strength against all majors, including the New Zealand dollar.
|What do these figures mean?|
|When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.
For example, it could be written:
1 GBP = 2.03 NZD
Here, 1 GBP is equivalent to approximately 2.03 NZD. This specifically measures the Pound worth against the New Zealand Dollar. If the NZD amount increases in this pairing, it’s positive for the GBP.
Or, if you were looking at it the other way around:
1 NZD = 0.49 GBP
In this example, 1 NZD is equivalent to approximately 0.49 GBP. This measures the New Zealand dollar’s worth versus the British Pound. If the GBP number gets larger, it’s good news for the NZD.