NZD/GBP decline should extend to 0.5250 - Westpac

According to Imre Speizer, Research Analyst at Westpac, NZD/GBP’s decline should extend to 0.5250 as despite concerns around the UK consumer, recent data remains firm. The latest BoE’s Agents’ report, which the MPC monitor closely, shows the economy holding up relatively well.

Key Quotes

“The BoE stated that they may withdraw accommodation more rapidly if a smooth Brexit path develops. With negotiations on ice during the election, GBP will respond to firmer data.”

“Data this week includes April retail sales (18th), CBI trends (19th), 2nd estimate 1Q GDP (25th). June 8th election and Brexit negotiations.”

“3 months ahead: Brexit negotiations remain a major risk for GBP. We stick with our view that NZD/GBP could rebound by year end towards 0.57.”