The British Pound (GBP) recovered off 2.0340 (0.4915) midweek post the Bank of England (BoE) release clawing back losses against the New Zealand Dollar (NZD) to 2.0550 (0.4865) into Friday. UK GDP rose 0.2% in the month of May with the biggest contribution coming from food and beverage and strong wage growth. The BoE will hike at least one more time in efforts to bring down inflation. Meanwhile NZ q/q GDP also printed – the result not pretty with the economy dropping into a recession with a print of -0.1% following -0.6% in the fourth quarter. Market analysts seem to be on the fence with the timing of rate hikes, many predicting cuts could happen as soon as late this year. The determining factor could be in wages data – if unemployment rises this could be the signal the RBNZ needs. Downside bias remains for the kiwi.
The current interbank midrate is: NZDGBP 0.4878 GBPNZD 2.0500
The interbank range this week has been: NZDGBP 0.4864- 0.4916 GBPNZD 2.0340- 2.0558