The New Zealand Dollar (NZD) sank to 0.4600 (2.1745) Monday against the British Pound (GBP) before bouncing back briefly to push past the weekly open at 0.4660 (2.1470) to 0.4670 (2.1410) midweek. NZ Unemployment rose from 4.4% to 4.76% in June slightly down on predictions of 4.7% boosting the kiwi to 0.4725 (2.1160) NZ Inflation expectations put a cap on further NZD rises after the 2-year forecast was pegged back from 2.33% to 2.03%. We shall see next Wednesday if the RBNZ cut rates as markets are predicting or leave unchanged at 5.5%. We expect a cut based on recent poor business activity and incoming data. Also of note Wednesday is UK CPI y/y expected to rise from 2.0%.
The current interbank midrate is: NZDGBP 0.4712 GBPNZD 2.1222
The interbank range this week has been: NZDGBP 0.4598- 0.4740 GBPNZD 2.1096- 2.1747