NZD/GBP: Decline has stalled - Westpac

NZD/GBP’s decline has stalled in the 0.53-0.54 area, as Brexit negotiators have taken a more hard-line stance, weighing on the GBP and is unlikely to dissipate in the near term, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The UK event calendar this week includes CBI trends (22nd), Nationwide house prices, business & consumer confidence surveys, and of course Brexit negotiations (25th) and domestic politics.”

“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.”