Friday’s high: NZ$1.8164
Friday’s low: NZ$1.7906
NZD/GBP Losses Caused by Gathering Labour Momentum
Political news weakened the New Zealand Dollar yesterday, with a strong performance from Labour’s Jacinda Ardern keeping the election race unpredictably close. Although dismissed as ‘stardust’ by defending National Bill English, Ardern quickly repurposed the word into a rallying phrase for her party.
The Pound also gained on the New Zealand Dollar thanks to the National Institute of Economic and Social Research (NIESR) upgrading its Q3 UK GDP estimate.
UK News to Drive GBP/NZD Volatility
UK economic news will be centre stage this week, with traders waiting for inflation stats on Tuesday, jobs figures on Wednesday and a Bank of England (BoE) policy meeting on Thursday.
If UK inflation falls and wages rise, the current wage squeeze will be reduced, which could inspire a higher GBP/NZD exchange rate. Additionally, any signs of confidence from BoE policymakers could also bring on Pound appreciation.
The only notable NZ news this week will be Thursday’s business activity measure. The August PMI is set to rise marginally, which may be enough to secure a small NZD advance.
09:30 UK Inflation Rate
09:30 UK Average Earnings Growth
09:30 UK Unemployment Rate
12:00 UK Bank of England (BoE) Interest Rate Decision
23:30 NZ Business PMI
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Senior Currency Broker
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