The New Zealand Dollar (NZD) held around 0.4810 (2.0800) levels against the British Pound (GBP) for most of the week, the third week the cross has traded sideways. The Bank of England (BoE) could start cutting rates earlier than predicted in August even if wage growth and inflation remain stubbornly above the central bank’s 2.0% inflation target. We have seen the GBP weaken off over the past 5 week’s or so from the 0.4710 (2.1240) level, we expect further action to retest the resistance point at 0.4900 (2.0400) over the next couple of weeks.
The current interbank midrate is: NZDGBP 0.4808 GBPNZD 2.0798
The interbank range this week has been: NZDGBP 0.4798- 0.4828 GBPNZD 2.0712- 2.0840