The Pound to New Zealand Dollar (GBP/NZD) exchange rate is steadily rising this morning after the health secretary Sajid Javid yesterday confirmed that the final set of lockdown easing measures are still set for July 19th.
The New Zealand Dollar continues to suffer on the back of a risk-off mood as coronavirus cases surge globally.
Last Week: Dovish BoE causes Pound to Weaken
The Pound had been supported against many of its major rivals at the start of last week as positive CBI industrial trends orders and flash PMI figures from the UK bolstered the appeal of Sterling.
However a more dovish than expected outlook from the Bank of England (BoE) towards the end of the week caused the Pound to weaken.
The New Zealand Dollar was kept broadly appealing for much of the week on a strengthening market mood and weakening of the US Dollar.
The GBP/NZD pairing ended the week trending lower as a disappointing consumer confidence index from the UK weakened the Pound further heading into the weekend.
Three Things to Watch for This Week
- UK Manufacturing PMI
Towards the end of the week the release of the most recent Markit Manufacturing PMI from the UK could push the Pound higher as the PMI is expected to show a sustained growth in the manufacturing sector throughout June.
- ANZ Business Confidence Final
Mid-week will see the release of the latest ANZ business confidence index from New Zealand for June. The ‘Kiwi’ could find itself struggling for support if the index meets forecasts of -0.4.
- Coronavirus Developments
GBP/NZD exchange rate movement could be driven by any further coronavirus developments in the coming days, as cases surge across Asia and the delta variant of the virus becomes more prevalent the global market mood could sour further limiting the New Zealand Dollar.
A quieter economic week for the Pound and New Zealand Dollar could see movement driven more by the global market mood and coronavirus developments for much of the week. However, the latest manufacturing PMI along with the final GDP growth rate reading for Q1 from the UK could see the Pound trading in a mixed range.