The English Pound (GBP) continued its run lower extending off last week’s 0.5155 (1.9400) level reaching 0.5290 (1.8900) Wednesday against the New Zealand Dollar (NZD) after PMI reads were soft and budget deficits were terrible. This area is the top of a recent range going back to late September last year. However, the GBP reversed most of the losses heading into Thursday with NZ CPI releasing bang on expectations at 7.2% y/y taking price back to 0.5230 (1.9130). With CPI printing as expected for the fourth quarter this should keep the door open for further interest rate hikes over the next few months to a peak of 5.25%. Looking ahead we have NZ job’s report and Bank of England Monetary Policy report next week.
The current interbank midrate is: NZDGBP 0.5222 GBPNZD 1.9149
The interbank range this week has been: NZDGBP 0.5207- 0.5291 GBPNZD 1.8897- 1.9202