Friday’s high: $1.9030
Friday’s low: $1.8892
Upbeat Growth Estimate Strengthens Pound
The Pound rallied by almost a cent against the New Zealand Dollar at the end of last week’s session as investors welcomed some upbeat trade figures from the UK, with data released from the ONS showing that Britain’s trade deficit narrowed from £3.46bn to £2.75bn in September
Sterling sentiment was further bolstered by NIESR’s latest growth estimate as it suggested that the UK economy grew 0.5% over the last three months.
In the meantime, the New Zealand Dollar struggled to find any gains on Friday as flat card spending figures in October suggests that retail activity may have seen little growth at the start of the fourth quarter.
NZD Outlook: Inflation?
Looking to the week ahead, the GBP NZD exchange rate may strengthen on Tuesday as economists forecast that UK inflation will have risen again in October.
However with the Bank of England (BoE) recently indicating that it will not be raising rates again for the foreseeable future, Sterling could in fact weaken if investors fear that soaring inflation may place too much pressure on consumers.
Meanwhile a lull in notable domestic data until Thursday could leave the New Zealand Dollar a little directionless this week, exposing it to outside influences such as commodity prices.
09:30 UK Inflation Rate Oct
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