NZD/GBP: Stuck in a sideways range - Westpac

NZD/GBP remains stuck in a sideways range of 0.5600- 0.5750, notes Imre Speizer, Research Analyst at Westpac.

Key Quotes

“GBP offers little appeal amid ongoing background negatives including: 1) persistent Brexit vulnerabilities; and 2) a central bank that is clearly in no rush to begin normalising monetary policy, judging by its recent projection downgrades.”

“The data calendar this week includes Q2 GDP and the CBI survey.”

“3 months ahead: Our view that NZD/GBP could rise above 0.59 by year end is dependent on uncertainty from Brexit eventually causing a slowdown in activity.”