UK PMI data came in above expectations at 48.8 vs 48.0 improving the GBP yesterday to 0.5160 (1.9370) against the New Zealand Dollar (NZD). Analysts however are still predicting a steep fall in business activity over the coming months with prospects of a UK recession likely. Meanwhile the RBNZ raised their interest rate 75 points as planned to 4.25% Wednesday the cross spiking to 0.5215 (1.9170) briefly on the news. Governor Orr said peak estimates are now at 5.5% in Q3 2023 from 4.10% in Q2 2023. Looking into next week the calendar is light indicating big ticket themes will be the main driver. Downside risk remain in the pair.
The current interbank midrate is: NZDGBP 0.5165 GBPNZD 1.9361
The interbank range this week has been: NZDGBP 0.5155- 0.5216 GBPNZD 1.9171- 1.9395