NZD/GBP: Decline has stalled - Westpac

NZD/GBP’s decline has stalled in the 0.53-0.54 area, as Brexit negotiations are weighing on the GBP, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“BoE signals it is on track for rate hikes, starting as early as November, are helping the GBP. Thus, NZD/GBP retains downside potential during the weeks ahead. The UK event calendar this week includes consumer, business, housing and PMI surveys.”

“3 months ahead: Medium term direction depends largely on whether the uncertainty from Brexit eventually causes a slowdown in activity. If so, NZD/GBP is likely to trade in the high 0.50s by year end. Alternatively, should the economy shrug off Brexit, then NZD/GBP could test the low 0.50s.”