NZD/GBP jumped 1.4p after the election, to 0.58 and further weakness in GBP (and upside for NZD/GBP) is possible this week, amid uncertainty regarding the makeup of the Government and its leadership, according to Imre Speizer, Research Analyst at Westpac.
“Economic events this week includes Apr. ind. prod. and trade (9th), May CPI (13th), Apr. empl (14th), May retail sales and BoE MPC (15th). Brexit negotiations start with the first key meeting on 19th June.”
“3 months ahead: Brexit negotiations, which begin in earnest on 19 June, remain a major risk for GBP. We stick with our view that NZD/GBP could rise further by year end, our current target 0.59.”