The English Pound (GBP) has extended losses through pivotal support at 1.9000 (0.5265) against the New Zealand Dollar (NZD) reaching 1.8720 (0.5340) overnight before recovering to 1.8940 (0.5280) the weekly open. The UK inflation rate jumped to 9.4% y/y in June, the highest it’s been since 1982 above estimate of 9.3% and May’s 9.1%. Pressures on fuel and food prices remain an issue with petrol prices climbing 18% per litre in June, the largest single month jump since 1990. July’s forecast out tomorrow is predicted to be around 9.4% with some predicting further rises into the 10’s. The highlight on the calendar this week is the RBNZ cash rate release with markets widely predicting a 50-point hike. Talk around further rises is our main focus and should drive price in the pair either way.0.5350 (1.8700) Looks solid resistance on the chart, the kiwi would be doing well to make a clean break higher.
Current Level: 0.5274 (1.8960)
Resistance: 0.5240 (1.9120)
Support: 0.5230 (1.8730)
Last Weeks Range: 0.5164-0.5337 (1.8736-1.9362)