The Pound and New Zealand Dollar are vying for the position of worst-performing G10 on a rolling month-on-month basis, and which currency comes out on top at the end of the coming week could well depend on the outcome of UK wage and New Zealand inflation data.
The Pound-to-New-Zealand-Dollar rate was on the back foot Friday, despite gains elsewhere for Sterling, after the Antipodean currencies were lifted by a series of Chinese economic figures that surprised on the upside.
The New Zealand Dollar will weaken again this year as the Reserve Bank of New Zealand (RBNZ) cuts its interest rate to a new record low, according to the latest forecasts from Westpac, which should drive the Pound-to-Kiwi rate higher even as the UK economy sits in limbo half in and half out of the EU.
The Pound-to-New Zealand-Dollar rate was trading around 1.9212 Monday after rising by a quarter of a percent in the previous week, although studies of the charts suggest a neutral outlook for the days ahead.
The New Zealand Dollar fell sharply against all rivals Wednesday after the Reserve Bank of New Zealand (RBNZ) warned in its March monetary policy update that the next move in its interest rate is likely to be a cut.
The Pound-to-New-Zealand-Dollar rate was trading around 1.9167 Monday after falling more than one percent in the previous week, although signals coming off the charts increasingly suggest that further losses could be just around the corner for the exchange rate.
The New Zealand Dollar received a boost from international developments on Thursday and after official data showed the economy growing faster than many domestic banks had anticipated, although the market is still betting the Reserve Bank of New Zealand (RBNZ) will cut its interest rate later this year.