NZD/GBP rebound could extend to 0.5325 - Westpac

NZD/GBP’s recent rebound could extend to 0.5325 - the Nov high, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Some progress on the Brexit divorce has given little support to GBP. The event calendar during the week ahead includes CPI/ PPI (12th), employment (13th), and the highlight - BoE (14th).”

“CPI, housing employment and wages data over the next week will prove critical barometers of just how strained the UK consumer is likely to be into the Christmas season. They will also be critical inputs into the BoE meeting on 14th Dec.”

“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 0.50.”