We've had quite some chatter today about Brexit.
Due to a surge in bets that the Reserve Bank of New Zealand (RBNZ) will cut New Zealand interest rates soon, GBP/NZD saw a jump in demand last week that took the pair from the level of 1.9165 to close the week near the level of 1.9362. If the pound drops further, 1.29 is possibly seen as its next support level.
Despite some decent United Kingdom data in recent sessions, demand for the Pound has been limited this week so far amid uncertainties over how the Brexit process will unfold.More news: Continetti: Buttigieg Shouldn’t Have Started a Fight With Pence on Christian Values
No new fresh downside movement is weighing on the New Zealand Dollar today, but the currency has been unable to benefit against a weaker Pound either.
As a result, the Pound has been unable to benefit from this morning's stronger than expected United Kingdom growth data. The British Pound found some support after the House of Lords approved Cooper-Letwin bill that would force PM to request an extension and avoid a no-deal Brexit on April 12.
Demand for the Pound was a little stronger last week on hopes that UK Prime Minister Theresa May would be able to reach a compromise Brexit plan with opposition Leader Jeremy Corbyn.More news: Miami Heat honor Dwyane Wade before final home game of National Basketball Association career
This is keeping investors from buying the Pound much ahead of today's European Union summit, when the United Kingdom and European Union will attempt to agree on a Brexit delay. The UK's Office of National Statistics reported that Industrial and Manufacturing Production were up in February, at 0.6% and 0.9%, respectively beating analysts' expectations across the board, on a month-over-month basis. The ecostat shows a surge in stockpiling given the Brexit uncertainty now in the United Kingdom and the possible threat to supply chains.
For now, US Dollar investors are highly anticipating US data and Federal Reserve news due later today.
This has kept pressure on the New Zealand Dollar, and recent rises in risk-sentiment have benefitted the currency's rivals more. This has been due to a mixture of US Dollar (USD) weakness, as well as stronger United Kingdom data. The Pound to Danish Krone exchange rate is now trending in the region of 8.6833. This coupled with optimism comments by the United Kingdom justice secretary - David Gauke, saying that meetings with Labour party have been constructive and that talks have found some common ground, provided an additional boost.More news: Arsenal goalscorer Ramsey on Napoli win
Due to Brexit uncertainties and strong US growth data, GBP/USD edged lower last week after failing to sustain any of the Pound's mid-week gains.