NZD/GBP: Neutral outlook this week - Westpac

NZD/GBP plunged last week on surprising hawkish comments from the BoE, but Imre Speizer, research analyst at Westpac, read comments from Carney and Haldane as highly data conditional and as a result holds a neutral outlook for the cross this week.

Key Quotes

“Consumer confidence and business investment are vulnerable given domestic politics and Brexit negotiations. Thus we hold a neutral outlook for the cross this week.”

“Data includes PMIs (3rd and 5th July) and BRC (5th), and the third take on 1Q GDP.”

“3 months ahead: Brexit negotiations, which begin in earnest on 19 June, remain a major risk for GBP. We stick with our view that NZD/GBP could rise further by year end, our current target 0.59.”