FX News

NZD/GBP Conversion:

The New Zealand Dollar (NZD) bounced off 0.5220 (1.9150) at the weekly close, travelling to 0.5265 (1.9000) early Tuesday. The sideways theme in the cross is still on show, a break past 0.5280 (1.8930) would signal further upside intent. The economic outlook in the UK is looking worse by the day with the BoE eying a recession late this year. The energy crisis and rising costs to households is causing much worry. The UK central bank will have no choice but to continue to raise its benchmark interest rate with predictions we could see a 75-point jump in the September meeting accompanied with a dovish review. Big rate hike moves don’t always indicate a stronger currency as we have seen of late the opposite has applied as the UK economy enters a period of stagnation. A thin economic calendar should leave the markets contemplating big picture themes this week.

Current Level: 0.5252 (1.9040)
Resistance: 0.5330 (1.9400)
Support: 0.5155 (1.8770)
Last Weeks Range: 0.5220-0.5293 (1.8992-1.9157)

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