The British Pound (GBP) extended its run higher against the New Zealand Dollar (NZD) reaching 2.0660 (0.4840) around the weekly close, a 3-week high. The kiwi earlier, unable to hold the double bottom area at 2.0270 (0.4935) as risk tone darkened. This morning NZ CPI 3rd quarter printed at 1.8% or 5.6% y/y down from 6.0%, welcomed by the RBNZ, however questions still remain whether the RBNZ will need to hike one more time prior to Christmas. UK CPI is expected to print at 6.6% y/y down from 6.7% with further declines in food inflation and accommodation expected. Imminent attacks on Gaza will suit the GBP.
Current Level: 0.4832
Resistance: 0.4925
Support: 0.4800
Last Weeks Range: 0.4840 – 0.4932