GBP/NZD Volatility Continues as UK GDP and New Zealand Confidence Data Loom
The Pound to New Zealand Dollar exchange rate has been volatile in recent days, influenced by UK GDP data, New Zealand confidence levels, and overall risk sentiment.
Last week, GBP/NZD rose to a six-day high before falling to a nine-day low, trading at NZ$2.3383 at the time of writing, virtually unchanged from the previous week.
UK consumer confidence has been a major factor in Sterling's performance, falling to a three-year low due to concerns over higher interest rates and potential tax hikes. UK government borrowing also weighed on sentiment, but better-than-forecast manufacturing data and falling oil prices helped GBP avoid further losses.
The Reserve Bank of New Zealand Governor Anna Breman warned that the recent rise in oil prices would likely lead to higher inflation, fuelling bets for further interest rate hikes. However, ongoing risk aversion and a dovish repricing of RBNZ bets subdued the 'Kiwi'.