Last week’s uptrend in the British Pound (GBP) was indeed intense across the board after the Pound collapsed to 0.5535 (1.8070) early in the week before surging back to briefly reach 0.5010 (1.9960) against the New Zealand Dollar (NZD). A perfect storm of political uncertainty, Inflation and higher interest rates threatened the financial system in the UK spooking markets. The tax cuts by new PM Truss sparked concerns about the UK’s fiscal stability crashing the GBP and UK govt Bonds known as “gilts”. The UK then abolished the planned tax cuts to high income earners after a public backlash making a U turn on the commitment sending the GBP to 0.5020 (1.9920). On the calendar this week is the RBNZ cash rate announcement and a hike to 3.5% which could give the kiwi a boost.
Current Level: 0.5047 (1.9813)
Resistance: 0.5335 (1.9950)
Support: 0.5010 (1.8750)
Last Weeks Range: 0.5011-0.5548 (1.8023-1.9954)