The Pound to New Zealand Dollar (GBP/NZD) exchange rate has strengthened since markets opened this morning as a risk-off mood limits the appeal of NZD exchange rates.
Despite a lack of economic data from the UK, Sterling has remained broadly appealing to investors as domestic coronavirus developments continue to support the Pound.
What’s Been Happening: Pound Regains Traction on Back of Bank of England Interest Rate Decision
The Pound (GBP) was trading in a mixed range against the New Zealand Dollar (NZD) last week as lacklustre PMI figures from the UK and a strengthening market mood caused GBP exchange rates to stumble at the start of the week.
Towards the end of the week however, the Pound saw itself making headwind against the ‘Kiwi’ on the back of a more hawkish stance from the Bank of England (BoE) regarding the UK’s economic outlook.
The GBP/NZD pairing ended the week trending higher as a resurgence in the US Dollar (USD) caused the New Zealand Dollar to sour heading into the weekend.
Three Things to Watch for This Week
- Coronavirus Developments
Both Pound and New Zealand Dollar traders will keep an eye on any further coronavirus developments to drive movement in the GBP/NZD exchange rate this week.
2. UK GDP Growth Rate
Pound investors will be looking towards Thursday’s preliminary GDP growth rate data for Q2. GDP is forecast to have rebounded 4.8% during the second quarter of the year, a figure which would provide fresh impetus for Sterling to push higher.
3. New Zealand Business PMI
On Friday, the New Zealand business PMI could provide much needed support to the New Zealand Dollar if the PMI remained in expansion territory during July.
GBP/NZD Exchange Rate Forecast
A quieter economic calendar for both the Pound and the New Zealand Dollar will see investors keeping an eye on the global market mood and coronavirus developments to drive movement in the pairing in the coming days.