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GBP/NZD Nosedives as Political Worries Weigh on Pound

Yesterday’s high: NZ$1.9024

Yesterday’s low: NZ$1.8881

Pound Pressured as Investors Fear for Future of Theresa May

The Pound plummeted by over a cent against the New Zealand Dollar at the start of this week’s session as Sterling sentiment was soured by a report that up to 40 MPs are plotting a leadership challenge against the Prime Minister.

This comes amid worries that the apparent instability of the UK government is negatively impacting Brexit talks.

However, underlying weakness in the ‘Kiwi’ caused GBP NZD to recoup some of its losses by the end of the day as concerns remained that a change to the Reserve Bank of New Zealand’s (RBNZ) mandate could leave rates on hold for longer

NZD Outlook: Sterling to Rise on Inflation Data?

Looking ahead, the GBP NZD exchange rate may rally this morning with the release of the UK’s latest CPI as economists forecast that inflation will have risen from 3% to 3.1% in October.

However, with the Bank of England (BoE) having only just voted to hike interest rates, another jump in inflation may not provide its usual lift to the Pound.

Meanwhile, the New Zealand Dollar may struggle to find momentum this week due to a lull in domestic data until the second half of the week.

Key Events

14th November

09:30 UK Inflation Rate Oct

16th November

22:45 NZ Business PMI Oct

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To keep up to date with the New Zealand Dollar, visit the NZD blog in our Currency News section.

Joe Mayhew

Senior Currency Broker
T: 01442 892 060

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