The Pound to New Zealand Dollar (GBP/NZD) exchange rate has soared since markets opened this morning following the latest figures from the UK that have shown the unemployment rate dropped during the second quarter of the year.
The New Zealand Dollar has lacked any support this morning as a lack of economic data alongside a weakening market mood does little to bolster the ‘Kiwi.’
What’s Been Happening: Sterling Struggled as New Zealand Dollar found itself Pushing Higher
The Pound spent most of last week weakening against the New Zealand Dollar despite a rebound in UK economic growth during Q2.
However, the figure was not enough to support the Pound heading into the weekend, as a more upbeat market mood began to support the New Zealand Dollar towards the end of the week.
The GBP/NZD exchange rate ended the week trending lower as NZD exchange rates were able to hold onto limited gains despite an absence of economic data from New Zealand.
Three Things to Watch for This Week
- New Zealand Interest Rate Decision
Tomorrow will see the latest interest rate decision from the Reserve Bank of New Zealand (RBNZ). The bank is expected to raise its interest rates to 0.5% and investors will also be keeping an eye on the tone the bank takes moving forward.
2. UK Inflation Rate
Pound investors will be looking towards tomorrow’s UK inflation rate figures from the UK from July which is forecast to show that consumer prices softened to 2.3%. The fall in inflation could cause the Pound to stumble.
3. UK Retail Sales
Friday will also see the release of the most recent retail sales figures from the UK. Retail sales are thought to have increased 0.5%, a figure that could push Sterling higher heading into the weekend.
GBP/NZD Exchange Rate Forecast
This week’s economic calendar for the UK will see movement driven by both inflation and retail sales figures for much of the week. The main catalyst for movement in the New Zealand Dollar is expected to be from the RBNZ’s interest rate decision tomorrow.