FX News

NZD/GBP Transfer:

The New Zealand Dollar (NZD) hasn’t been able to hold around the (0.5030) 1.9870 area massacred after the RBNZ release Wednesday. Price dipped sharply as the RBNZ hiked the cash rate 25 points. This was largely priced into the curve but with Governor Orr suggesting there would be no more tightening needed in this cycle and inflation is now under control the kiwi dropped over a cent to settle around 0.4920 (2.0320). Future rate moves in the UK will depend on developing inflation for the Bank of England. Inflation year on year came in at a hefty 8.7% Wednesday much higher than forecast raising forecasts for the central bank to keep hiking. The bank could end up hiking another 25 points in June then again in August and September. The bank said, “we expect inflation to exceed forecast modestly”. They will no doubt keep hiking in order to return inflation to its target band. The chance of a recession is now much more likely. It’s a light calendar next week for the cross, we may struggle to break past (0.4900) 2.0400 support.

The current interbank midrate is: NZDGBP 0.4914 GBPNZD 2.0350
The interbank range this week has been: NZDGBP 0.4902- 0.5065 GBPNZD 1.9744- 2.0396

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