The British Pound (GBP) reached the triple bottom support at 2.0930 (0.4780) midweek against the New Zealand Dollar (NZD) but couldn’t hold this area cutting lower through to 2.0600 (0.4855) – another key “Fib” level as UK CPI y/y published. UK inflation dropped below the forecast of 6.7% to 4.6% reinforcing rhetoric that the Bank of England (BoE) most likely won’t raise rates again. Markets convinced the central bank are done raising rates and forecasts turn to rate cuts predicted to begin around June 2024. Over the past few hours price has receded to 2.0780 (0.4812) as risk flow deteriorates. End of week predictions suggest we could retest the 2.0950 (0.4775) zone again.
The current interbank midrate is: NZDGBP 0.4803 GBPNZD 2.0820
The interbank range this week has been: NZDGBP 0.4768- 0.4857 GBPNZD 2.0588- 2.0973