The British Pound (GBP) rallied to 2.0810 (0.4805) levels midweek against the New Zealand Dollar (NZD) after NZ inflation expectations came in at 2.5% weakening the NZD. UK inflation was unchanged at 4.0% after forecasting suggested this would come in higher at 4.1%. This is welcome news for the Bank of England. It’s well within their 2.0% forecast over the coming months. This should give way to cuts on the horizon. Energy prices have been a large contributor and will make the BoE much more comfortable to cut perhaps in June. The release sank the Pound reversing all the way back to 0.4870 (2.0530) this morning.
The current interbank midrate is: NZDGBP 0.4847 GBPNZD 2.0631
The interbank range this week has been: NZDGBP 0.4804- 0.4873 GBPNZD 2.0519- 2.0816