The New Zealand Dollar (NZD) continues its run higher against the British Pound (GBP) Monday extending from last week’s 0.4915 (2.0340) to 0.5030 (1.9877) this morning as the “risk on” mood supported the kiwi. Equity clocked further gains overnight the second day returning over 2% profits. News of the Fed getting close to considering no further hikes has had a “feel good” vibe however considering the long-term outlook by the Bank of England (BoE) to keep hiking this 10-day NZD rally could end suddenly. This week’s Bank of England Cash rate should see a hike of 25 points to 4.50% with the BoE signalling more to follow in the coming months. Resistance on the chart sits at 0.5040 (1.9850), a breakthrough here and we could see further upside.
Current Level: 0.5029 (1.9884)
Resistance: 0.5045 (2.000)
Support: 0.5000 (1.9820)
Last Weeks Range: 0.4913-0.5011 (1.9955-2.0353)