NZD/GBP: Potential to extend rise to 0.5800 - Westpac

NZD/GBP has potential to extend its rise to 0.5800, although Westpac cautions the move is getting ripe, explains Imre Speizer, Analyst at Westpac.

Key Quotes

“A catalyst for GBP selling last week was Bank of England Governor Carney saying that “now is not the time to hike rates” (although his chief economist said the opposite later on). Turnover in consumer services and faltering retail sales suggest that the household is under pressure.”

“This week we have CBI retail trends (27th), Brexit negotiations, and possibly a post election budget.”

“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.”