The New Zealand Dollar (NZD) has had a bumper week against the British Pound (GBP) rising from the 0.4565 (2.1900) level Monday to post 0.4680 (2.1380) this morning reversing nearly 2 weeks of poor performances. The Pound has struggled with the latest release of the new government’s public finances. The budget gap is larger than first thought with news this will be filled with higher taxes. The Bank of England (BoE) also cut interest rates last night from 5.25% to 5.0% in a 5/4-member vote weakening the GBP. Next week on the economic docket is NZ employment data with predictions the unemployment rate will rise from 4.3% to 4.7%.
The current interbank midrate is: NZDGBP 0.4663 GBPNZD 2.1445
The interbank range this week has been: NZDGBP 0.4564- 0.4677 GBPNZD 2.1377- 2.1907