The Pound New Zealand Dollar (GBP/NZD) exchange rate rose on Thursday as softer New Zealand inflation dented the ‘Kiwi’.
At the time of writing, GBP/NZD traded at NZ$2.3560, up 0.3% on the day.
Latest — Exchange Rates:
Pound to New Zealand Dollar (GBP/NZD): 2.356379 (+0.34%)
Euro to New Zealand Dollar (EUR/NZD): 1.974324 (+0.24%)
New Zealand Dollar to Dollar (NZD/USD): 0.567929 (-0.43%)
DAILY RECAP:
The New Zealand Dollar (NZD) fell during Thursday’s Asian trading session as markets digested the latest New Zealand inflation figures.
Price pressures cooled more than forecast in the third quarter. Inflation eased from 4.1% to 3.7%, below market expectations for 3.8%.
The data dampened bets that the Reserve Bank of New Zealand (RBNZ) would raise interest rates at its policy decision next week, which put pressure on the ‘Kiwi’.
Additionally, a souring market mood dented demand for the risk-sensitive New Zealand Dollar.
Meanwhile, the Pound (GBP) attracted limited support on Thursday, with Sterling seemingly enjoying the afterglow of high-impact data published earlier in the week.
Tuesday’s jobs report showed an unexpected decline in unemployment, while Wednesday’s consumer price index revealed a sharper-than-forecast rise in inflation.
Taken together, these releases fuelled bets that the Bank of England (BoE) could shift to a more hawkish approach to monetary policy over the coming months, which continued providing the Pound with support into Thursday’s session.
Near-Term GBP/NZD Forecast: Downbeat UK Data to Dent Sterling?
Looking ahead, Sterling could face headwinds through the final session of the week as markets react to new economic data.
The UK’s latest retail sales figures are forecast to show a 0.1% contraction in sales growth in September, which could raise concerns about the country’s economic resilience.
Later in the morning, the preliminary PMI results for October are expected to show that activity in the UK services and manufacturing sectors slowed. This could increase pressure on the Pound.
Elsewhere, market risk appetite may impact GBP/NZD. If a risk-off mood prevails, the risk-sensitive New Zealand Dollar may face resistance.
Exchange Rates UK Research
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