NZD/GBP: Technical target of 0.5450 - Westpac

NZD/GBP sustained its break below a multi-month sideways range, with a technical target of 0.5450, explains Imre Speizer, Research Analyst at Westpac.

Key Quotes

“UK economic data has been better than expected over the past few months, and the market has become more sanguine about Brexit, although the risk of a slump in confidence does remain over the medium term. The UK event calendar this week includes the MPC policy decision on 14th Sep. CPI/PPI (12th), employment (13th) and retail sales (14th).”

“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.”