NZD/GBP cross has stalled - Westpac

The cross has stalled as the outlook for monetary policy looks even more uncertain, explains Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Dissent among BoE voting committee members has surfaced but both Carney and Haldane persistently repeat that they remain data dependent, especially around consumer activity and business intentions, and services sector activity (it emplys 80% of the UK workforce) does look soft.”

“The data highlight this week is the labour data on Wed. Otherwise it’s quiet.”

“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.”