The Pound to New Zealand Dollar (GBP/NZD) exchange rate has been mixed since markets opened this morning. Investors remain cautious surrounding the global surge in coronavirus cases limiting the appeal of the GBP/NZD pairing.
Sterling could stumble throughout the day as an absence of economic data from the UK leaves the currency open to losses.
Last Week: New Zealand Dollar Steadily Rose as Sterling Plummeted
The Pound had been trading in a mixed range against the New Zealand Dollar last week whilst positive inflation figures bolstered the appeal of Sterling, coronavirus worries capped any meaningful gains.
However, towards the end of the week the Pound plummeted as employment change figures from the UK had shown unemployment in the country edged up during June.
The GBP/NZD pairing ended the week trending lower as a more upbeat market mood alongside a broad weakness in the Pound allowed the New Zealand Dollar to climb higher.
Three Things to Watch for This Week
- Coronavirus Developments
Following the announcement from UK Prime Minister Boris Johnson that vaccine passports will be needed in clubs from the end of September MP’s have called the plans an ‘absolute shambles,’ any further domestic coronavirus developments could cause the Pound to stumble.
- UK Retail Sales
Pound investors will be looking towards Friday’s UK retail sales figures for June which are forecast to have risen 0.4% as consumers became more confident in their spending. A rise in retail sales could provide Sterling support throughout much of Friday’s session.
- Flash Markit PMI’s
Friday will also see the release of the most recent flash Markit PMI figures from the UK. Whilst the data is preliminary it should give a broad overview of how the UK economy is performing currently.
This week’s economic calendar for the UK will see movement driven by retail sales and PMI figures towards the end of the week. A quieter week for the New Zealand Dollar will see investors keeping an eye on the global market mood in the coming days.