The Pound to New Zealand Dollar (GBP/NZD) exchange rate has dipped since markets opened this morning as the New Zealand Dollar pushes higher on the back of a strengthening global market mood.
The Pound could be open to further losses against the New Zealand Dollar today on absence of economic data from the UK.
What’s Been Happening: Risk-Off Trade Allows Sterling to Push Higher
The Pound had been supported against many of its major rivals at the start of last week as the unemployment rate in the UK edged lower.
Despite disappointing inflation and retail sales figures throughout the week from the UK, the Pound was able to shake off any limitations and continue to rise against the New Zealand Dollar.
The New Zealand Dollar struggled for much of the week as a dovish Reserve Bank of New Zealand and sour market mood did little to support the risk-correlated ‘Kiwi’ throughout the week.
Three Things to Watch for This Week
- CBI Distributive Trends
Mid-week will see the release of the CBI distributive trades survey from the UK for August, if the survey softens as forecast the Pound could struggle further.
2. ANZ Consumer Confidence
Later in the week will see the release of the latest ANZ consumer confidence index from New Zealand for August. The ‘Kiwi’ could find itself with additional support if the index rises as forecast.
3. Coronavirus Developments
The GBP/NZD exchange rate movement could be driven by any further coronavirus developments in the coming days, as investors begin to shake off the delta variant of the virus and the market mood strengthens, the New Zealand Dollar could push higher.
Pound New Zealand Dollar Outlook
A quieter economic week for the Pound and New Zealand Dollar could see movement driven more by the mood of global market and any further coronavirus developments for the majority of the week.