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.
The New Zealand dollar rallied strongly on Wednesday, driving GBP/NZD back to one-month lows and some key support levels on the charts, following a better-than-expected second quarter labour market report.