Retail Sales in the UK for the month of April improved 1.4% compared to -0.3% predicted coming after a fall of 1.2% in March figures giving the British Pound (GBP) strength against the New Zealand Dollar to 0.5110 (1.9560), the cross ending the week around 0.5130 (1.9490). Inflation jumped to 9% in April the highest level since 1982 following surging prices in electricity and other fuels. This compared to 7% in March and is a real worry for consumers. The only thing the bank of England can do in response is raise interest rates, if we see inflation clock 10%, we could see interest rates go to 3.5% by the end of 2022. On the calendar this week we have key Reserve Bank of New Zealand data with the rate announcement and policy statement. The RBNZ is expected to raise the cash rate by 50 points to 2.0% making it the highest since September 2016. We expect the cross to retest the 3-week high at 0.5210 (1.9200) levels this week.
Current Level: 0.5119 (1.9535)
Resistance: 0.5175 (1.9620)
Support: 0.5095 (1.9320)
Last Weeks Range: 0.5083-0.5138 (1.9460-1.9671)