GBP/NZD The Uptrend Remains in Place

GBP/NZD The Uptrend Remains in Place

Cable has been a clear winner over the past few days as the much better than expected wage data and decent Retail Sales have revived talk of a possible BOE hike this year. After today’s dovish FOMC presser that is much less likely -- the BOE is not going to front run the Fed when it comes to normalizing policy, but it nevertheless provides a bid for cable as the unit remains the only viable G-7 currency that could actually tighten policy in the foreseeable future.

In the meantime the kiwi continues to languish and even today’s big anti-dollar rally was quickly extinguished on the back of concerns from chairwoman Yellen that China’s slowdown is a problem. The RBNZ remains resolutely dovish and that means that rates on kiwi could go lower before the year end all of which keeps the GBP/NZD uptrend in place. 2.4000 remains the key support while 2.5000 is the next upside target for the bulls.

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