Listen to the latest market mood for the GBPNZD pair.
The risk tone is more positive to start the week as Asian equity markets trade higher on the day. Furthermore there are reports that US officials acknowledge that China was largely delivering its pledges on structural issues for January’s US-China trade deal. This supports the risk on tone.
The outlook for the NZD looks set to remain bullish as New Zealand was able to withdraw from lockdown measures on April 27. This should support the NZD medium term as its economy gets running more quickly than many other nations. This should give the NZD a head start in the 1st wave COVID19 economic recovery.
The GBP should remain weak medium term as the UK has still to confirm an EU-UK trade deal. Until there is an EU-UK trade deal we can expect the GBP to remain pressured.
Therefore, if this outlook remains, expect GBPNZD sellers at key pullbacks.
We expect this trade to play out over the next 4-6 weeks.
Risks to this outlook
Any negative news on COVID19 in relation to New Zealand.
Any positive news regarding an EU-UK trade deal.