NZD/GBP breaking down – Westpac

NZD/GBP broke down last week, driven mostly by NZD factors as recent UK data has been firmer than expected, with Westpac’s data pulse model showing short term economic momentum running above average, explains Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The UK event calendar highlight this week is Q3 GDP on Wed. Consensus is for a 0.3% quarterly gain, 1.5% annual.”

“3 months ahead: Medium term direction depends largely on whether the uncertainty from Brexit eventually causes a slowdown in activity. If not, then NZD/GBP could test the low 0.50s.”