We called it. A break above 0.4750 (2.1050) cemented further support for the New Zealand Dollar (NZD) to push higher with price reaching the 5-week high overnight at 0.4775 (2.0950). Softer UK data this week has rate hike expectations declining. The UK jobs report was rather dovish with no real growth over the past few months along with industrial production disappointing. We still however expect the Bank of England (BoE) to hike at next week’s policy meeting from 5.25% to 5.5%- this will be their 15th consecutive hike. We may see GBP strength develop towards the BoE Thursday.
The current interbank midrate is: NZDGBP 0.4761 GBPNZD 2.0951- 2.1003
The interbank range this week has been: NZDGBP 0.4714- 0.4773 GBPNZD 2.0951- 2.1213