The NZD/GBP has fallen so far this year to trade around 0.4800, undermined by the weaker KIWI and stronger inflationary pressures in the UK. Recent CPI inflation readings in the UK have indicated a reversal of recent falls, spiking due to supply constraints and pricing pressures from the Middle East war, Red Sea and Russian sanctions. The Bank of England meet this week and are expected to leave rates unchanged, but they may decide to recognise the inflation spike and leave rates higher for longer, thus supporting the GBP.
Current Level: 0.4800
Last Weeks Range: 0.4770 – 0.4805