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GBPNZD Breaches Support Ahead of Jobs and Interest Rates

NZDUSD
NZDUSD

GBPNZD was lower on the day as the market awaits U.K. employment figures and an interest rate decision from the RBNZ. Brexit talks are also back on the agenda in London today.

Tomorrow sees the release of the latest employment figures from the U.K. with expectations for a loss of -148k jobs, which is close to last months dismal -158k print. The furlough program was set to end in October and although the Chancellor has been under pressure to extend this, the anticipation of its ending could filter into the employment numbers.

Wednesday will see the Reserve Bank of New Zealand meeting to announce their latest monetary policy and interest rates. The bank may be under pressure to match the efforts of its neighbour Australia, with the Aussie Reserve Bank slashing rates to a record low of 0.1% and setting up a $140bn bond-buying program. New Zealand’s interest rate is still at 0.25% and investors expect it to stay there. The bank’s Governor Adrian Orr is expected to announce a new funding-for-lending (FLP) program, which gives cheap loans to banks in order to stimulate the economy. This was already seen in Australia.

Brexit still hangs over the British pound but talks were underway again in London today and both the U.K. Prime Minister and the EU Chief Negotiator were still upbeat that a deal could be done in time.  

GBPNZD Technical Outlook

GBPNZD has broken below the 1.9475 level that looked like it would provide support and a close here would be bearish. The target for shorts is the 1.9100 support level from September 20th. Shorts could place a stop above today’s high if we see the bearish close. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.  

GBPNZD Daily Chart