GBP/NZD Forecast: Labour Data Holds Key to Next Move

The Pound to New Zealand Dollar (GBP/NZD) exchange rate ended July near 2.2896, its lowest point of the month, after the Kiwi erased Sterling's earlier advantage.

New Zealand's labour-market report is now the main event risk this week, with markets looking for guidance on whether the Reserve Bank of New Zealand (RBNZ) can justify pressing ahead with further rate hikes.

The RBNZ raised its Official Cash Rate to 2.50% in July, its first increase in three years, and markets are pricing another move in September and tightening before year-end.

ING economists described the July increase as an 'insurance' hike, but warned that a one-off move could restrict the Kiwi's upside.