NZD/GBP could slip slightly further to 0.5250 - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that NZD/GBP’s decline has stalled around 0.5300 but could slip slightly further to 0.5250.

Key Quotes

“The unexpected resilience of the UK economy in the face of Brexit, which had boosted GBP, is now going to be sorely tested. BoE accommodation withdrawal could add unnecessary stress for consumers into the election and as Brexit negotiations intensify.”

“Data this week includes April CPI/PPI (16th), March labour data (17th) and April retail sales (18th), June 8th election and Brexit negotiations.”

“3 months ahead: The June 8th general election and Brexit negotiations will occupy market minds. We stick with our view that NZD/GBP could rebound by year end towards 0.57.”