NZD/GBP: Stuck in a sideways range - Westpac

Imre Speizer, Research Analyst at Westpac points out that NZD/GBP remains stuck in a sideways range of 0.5600- 0.5750.

Key Quotes

“GBP offers little appeal amid ongoing background negatives including: 1) persistent Brexit vulnerabilities; and 2) a central bank that is clearly in no rush to begin normalising monetary policy, judging by its recent projection downgrades.”

“The data calendar this week includes July inflation, labour market/wages and retail sales next week. Brexit and political vulnerabilities persist.”

“3 months ahead: Our view that NZD/GBP could rise above 0.59 by year end is dependent on uncertainty from Brexit eventually causing a slowdown in activity.”