The New Zealand Dollar (NZD) improved midweek to 0.4840 (2.0670) against the British Pound (GBP), the RBNZ more hawkish than expected sending the kiwi rallying. UK CPI released soon after surprising higher at 2.3% y/y compared to 2.1% forecast. This is still a very good result, down from 3.2% in March- the result sent the cross back towards 0.4800 (2.0850) erasing the earlier NZD move higher. RBNZ’s Orr kept interest rates on hold at 5.5% saying they will need to remain “restrictive: for higher than expected. Rates were expected to be cut from August/November but will now most likely be in the first Q of 2025. UK CPI has tracked to its lowest level in nearly 3 years and was seen as a trigger to Prime minister Sunak to call a snap general election for 4 July. Over the next couple of weeks, we expect price to retest the early Feb high of 0.4900 (2.0400)
The current interbank midrate is: NZDGBP 0.4796 GBPNZD 2.0850
The interbank range this week has been: NZDGBP 0.4786- 0.4839 GBPNZD 2.0665- 2.0894