NZD/GBP staging a minor rebound - Westpac

NZD/GBP is staging a minor rebound towards 0.54 as GBP has been hurt by last week’s BOE dovish hike - it signalled further hikes are not necessarily in the pipeline, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Further, the GBP has enjoyed a 14% rally this year, and is sue for a correction. The UK event calendar this week includes PMI components, BRC sales and housing surveys in advance of ind. prod. and trade (9th Nov), and CPI (14th).”

“3 months ahead: Medium term direction depends largely on whether the uncertainty from Brexit eventually causes a slowdown in activity. If not, then NZD/GBP could test 0.50.”