The lack of economic data over the week has seen the English Pound (GBP) extend its rally against the New Zealand Dollar (NZD) to 2.0730 (0.4825) this morning. Monetary policy differentials are influencing kiwi moves of late when we consider the Bank of England eyeing up to hike rates again over the coming months. We said this would strengthen the GBP further which is what has unfolded over the week. The docket is thin again next week, central bank action should continue to be the main driver.
The current interbank midrate is: NZDGBP 0.4836 GBPNZD 2.0678
The interbank range this week has been: NZDGBP 0.4822- 0.4914 GBPNZD 2.0347- 2.0737