Pound-New Zealand Dollar could remain near 11-year highs if the BoE stays hawkish, while election uncertainty may keep the Kiwi under pressure.
The Pound to New Zealand Dollar (GBP/NZD) exchange rate struck a fresh 11-year high on Wednesday, following the publication of New Zealand’s latest jobs data.
At the time of writing, GBP/NZD was trading at around NZ$2.3938. Up around 0.2% from the start of Wednesday’s session.
Pound to New Zealand Dollar (GBP/NZD): 2.393584 (-0.37%)
Euro to New Zealand Dollar (EUR/NZD): 1.99558 (-0.43%)
New Zealand Dollar to Dollar (NZD/USD): 0.562748 (+0.64%)
DAILY RECAP:
The New Zealand dollar (NZD) struck fresh multi-year lows on Wednesday, after New Zealand’s latest labour market figures revealed an unexpected deterioration in employment conditions in the third quarter of 2026.
Data published by Stats NZ showed domestic unemployment climbed from 5.6% to 5.7%, against consensus forecasts that it would fall to 5.5%.
The disappointing release prompted investors to further scale back expectations for additional monetary tightening from Reserve Bank of New Zealand’s (RBNZ) and left the ‘Kiwi’ unable to take advantage of the positive shift in risk appetite amid broad weakness in the US Dollar (USD).
The Pound (GBP) firmed against the softer New Zealand Dollar on Wednesday, but struggled to replicate this success against its other peers ahead of the Bank of England’s (BoE) interest rate decision on Thursday.
The BoE is expected to raise rates by 25 basis points to 4.00%, with the move being widely priced in by markets ahead of the decision.
This places the focus for GBP investors firmly on the bank’s forward guidance and whether policymakers support the current pricing of three additional hikes by September.
The decision lands amid growing divisions inside the central bank as several officials remain troubled by sticky underlying inflation, while others caution any tightening poses a risk to the UK economy
Near-Term GBP/NZD Forecast:
Turning to the second half of the week, the trajectory of the Pound to New Zealand exchange rate will hinge on the tone struck by the BoE when it concludes its latest policy meeting on Thursday.
Should the bank’s rate hike be delivered alongside language that pours cold water on the more hawkish expectations for tightening, Sterling could quickly face a sharp downside correction.
Meanwhile, the ‘Kiwi’ may remain on the back foot through the second half of the week amid rising political uncertainty ahead of New Zealand’s general election on Saturday.
Our currency coverage draws on live market data, official economic releases and published bank research.
