After hitting its worst levels in a fortnight this morning, the Pound New Zealand Dollar (GBP/NZD) exchange rate rebounded slightly higher at the time of writing.
Sterling fell back from highs yesterday. Investors took profit from the British currency’s recent best levels, despite persisting optimism over the UK’s coronavirus pandemic recovery outlook.
The New Zealand Dollar has been benefitting from a slight rise in demand for risk and trade-correlated currencies yesterday. Strong commodity trade on recovery hopes have also boosted NZD this week.
Last Week: Risk-Aversion Keeps GBP/NZD Near Best Levels
The Pound to New Zealand Dollar exchange rate hit its best level of 2021 so far last week. Investors continued to sell the New Zealand Dollar on market aversion to risk and trade-correlated currencies last week.
US economic recovery hopes and concerns about a ‘third wave’ of coronavirus infections across the globe left investors selling riskier currencies in favour of the safe haven US Dollar.
UK data continued to be impressive as well, helping Sterling to extend recent bullishness and keep GBP/NZD near its best levels.
Three Things to Watch For This Week
- New Zealand Business Confidence
The only notable New Zealand data still due to be published this week is ANZ’s April business confidence report. Due tomorrow, the data could influence New Zealand Dollar movement if it surprises.
- UK Construction PMI
Most of this week’s notable UK data has been published, but some shocking UK construction data could cause some Pound movement tomorrow.
- Coronavirus Developments
With the UK and New Zealand both looking to ease some restrictions soon, developments in infection rates and vaccination rollouts will of course remain influential to GBP/NZD.
This week’s economic calendar is fairly quiet. If there is no surprising data in the coming day or so, Pound to New Zealand Dollar exchange rate investors will be watching coronavirus developments and waiting for next week’s UK growth report.