The Pound to New Zealand Dollar (GBP/NZD) exchange rate has edged higher since markets opened this morning following a more sour market mood limiting the appeal of the ‘Kiwi’.
The Pound looks to suffer from an absence of notable data from the UK which could leave Sterling open to losses if the global market mood begins to improve.
What’s Been Happening: Sterling Struggles on back of Lacklustre Economic Data
The Pound spent most of last week weakening against the New Zealand Dollar on the back of disappointing PMI figures from the UK.
It comes as the New Zealand Dollar strengthened against a stronger market mood as a pullback in the US Dollar provided the risk-correlated ‘Kiwi’ fresh impetus to head higher.
The GBP/NZD exchange rate ended the week trending lower as the latest services PMI worried Sterling investors about the UK’s economic recovery from coronavirus.
Three Things to Watch for This Week
- Coronavirus Developments
Both domestic and global coronavirus developments will be eyed by investors throughout the week to drive movement in the GBP/NZD exchange rates, if investors continue to remain jittery over global economic recovery then the New Zealand Dollar could struggle further.
2. UK Industrial Production Data
Pound investors will be looking towards the latest industrial production figures from the UK on Friday. If industrial production continues to expand then Sterling could push higher.
3. UK GDP Figures
Friday will also see the release of the latest year-on-year GDP figures from the UK for July. GDP is forecast to have expanded 8% on the year, a figure which could bolster GBP exchange rates heading into the weekend.
GBP/NZD Exchange Rate Forecast
This week’s economic calendar for the UK will see movement driven by a range of data towards the end of the week. The main catalyst for movement in the New Zealand Dollar is expected to be the global market mood and any further global coronavirus developments.