NZD/GBP to target 0.53 - Westpac

NZD/GBP’s break below a multi-month sideways range accelerated last week, after BoE officials signalled rate hikes eventually and Imre Speizer, Research Analyst at Westpac suggests that it is likely to target 0.53 multi-week.

Key Quotes

“The UK event calendar this week includes retail sales & BoE Agents’ Report (20th), Public finances (21st), CBI trends (22nd), and Brexit talks (25th).”

“3 months ahead: Medium term direction depends largely on whether the uncertainty from Brexit eventually causes a slowdown in activity. If so, NZD/GBP is likely to trade in the high 0.50s by year end. Alternatively, should the economy shrug off Brexit, then NZD/GBP could test the low 0.50s.”