The British Pound (GBP) continued to rally over the week topping out at 1.9450 (0.5140) against the New Zealand Dollar (NZD) before slipping to 1.9300 (0.5180) levels into Friday sessions. The BRC report (British Retail Consortium) highlighted that food inflation rose 7.0% over the past year, the biggest jump since 2009 stretching the spending power of consumers even further. This will no doubt help push up expectations of a Bank of England (BoE) rate increase next Thursday- whether they raise 25 points, or 50 points remains uncertain. Key NZ unemployment data next week should also add excitement to the mix. We still support downside moves ahead for the kiwi – look for a retest of 0.5120 (1.9520) over the next few days is our prediction.
The current interbank midrate is: NZDGBP 0.5168 GBPNZD 1.9349
The interbank range this week has been: NZDGBP 0.5142- 0.5243 GBPNZD 1.9073- 1.9446