Yesterday’s high: NZ$1.9188
Yesterday’s low: NZ$1.9033
Pound Punished by Weak Wage Growth
The Pound initially slumped against the New Zealand Dollar on Wednesday on the back of the UK’s latest employment data as it showed that wage growth continued to lag behind inflation in September
Markets fear that the growing gap between wages and inflation is placing significant pressure on households and will likely lead to softer consumer spending over the coming months.
However, the New Zealand Dollar failed hold onto its gains, with investors shying away from the ‘Kiwi’ amid a sell-off of commodities, allowing GBP NZD to recoup the majority of its losses by the end of the European session.
NZD Outlook: Sterling to Stabilise on Retail Sales Figures?
Looking ahead, the GBP NZD exchange rate may stabilise for the first time this week with the release of the UK’s latest retail sales figures later today as economists forecast that sales will have shown modest growth in October after plummeting the month before.
Meanwhile, the New Zealand Dollar may weaken again later tonight with the publication of New Zealand’s latest Business PMI, which is expected to show that manufacturing activity slowed slightly last month.
09:30 UK Retail Sales Oct
22:45 NZ Business PMI Oct
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