The New Zealand Dollar (NZD) continues to underperform this week against the British Pound (GBP) falling briefly to 0.4655 (2.1490) Wednesday recovering slightly into Friday to 0.4670 (2.1415). UK CPI turned in sticky rising to 2.0% from 1.9% y/y in June, the Bank of England refraining from talk of cutting rates and will likely hesitate unwinding monetary policy with ongoing inflation pressures. We have already seen the Pound grow from 0.4810 (2.08) levels over the past fortnight, we predict a retest of 0.4630 (2.1585) the multi-year low.
The current interbank midrate is: NZDGBP 0.4663 GBPNZD 2.1445
The interbank range this week has been: NZDGBP 0.4652- 0.4718 GBPNZD 2.1193- 2.1493