FX News

NZD/GBP Transfer:

The British Pound (GBP) looked strong during early week trading clocking 1.9520 (0.5120) before pulling back to 1.9300 (0.5180) areas this morning. The RBNZ raised the cash rate 50 points as predicted Wednesday to 4.75% helping the kiwi to go on a short rally, Orr saying chances of a longer period of high inflation and ultimately higher interest rates look a possibility based on recent weather events which have devastated NZ. Citigroup are predicting a giant fall to inflation towards the end of this year with figures to slump to close to 2.0% with lower gas prices being the main driver. All things being equal we could see sharp rises in the NZD/GBP as monetary policy diverges. For the moment the GBP has enjoyed 3 weeks of momentum- we suspect this won’t last.
The current interbank midrate is: NZDGBP 0.5184 GBPNZD 1.9290
The interbank range this week has been: NZDGBP 0.5122- 0.5204 GBPNZD 1.9214- 1.9522

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