Inflation in the UK improved to 6.8% y/y down from 7.9% in June coming in bang on expectations. It’s good news for the Bank of England (BoE) however they still have work to do in order to bring down inflation further. The central bank should raise rates next month 50 basis points instead of the earlier 0.25% consensus. The New Zealand Dollar (NZD) extended its bear run over the week to clock 0.4870 (2.1530) breaking past March 2020 support, the next support is 0.4140 (2.4170), we think it will be one way traffic for a while yet.
The current interbank midrate is: NZDGBP 0.4652 GBPNZD 2.1496
The interbank range this week has been: NZDGBP 0.4644- 0.4724 GBPNZD 2.1168- 2.1533