The Pound to New Zealand Dollar exchange rate has resumed its recent correction lower in tandem with many US Dollar pairs and it could be likely to remain heavy, with a downside bias over the coming days.
The New Zealand dollar fell heavily against all major currencies overnight on Wednesday, leading to a spike in GBP/NZD, after the Reserve Bank of New Zealand cut its interest rate and signaled that further cuts are likely up ahead.
The Pound to New Zealand Dollar exchange rate has unraveled much of its July rally in recent trade but the author's model suggests it's likely to stabilise above 2.11 in the week ahead, with any rallies fading once near or above 2.14.
The New Zealand Dollar struggled for traction against the US Dollar and Pound on Thursday but could perform better in the week ahead as the market rethinks the outlook for Kiwi interest rates, according to ANZ Research.