The Pound to New Zealand Dollar is on course to break the 2023 high at 2.1587, but warning lights are flashing that this is a very overbought exchange rate.
The New Zealand Dollar is broadly stronger after the release of inflation figures that showed the Reserve Bank of New Zealand (RBNZ) still has more work to do if it wants to achieve the 2.0% target.
The Pound to New Zealand Dollar exchange rate can deliver more gains in the coming week, but beware of overbought conditions and any pullback if UK wage and inflation figures undershoot midweek.
The New Zealand Dollar has come under pressure after the Reserve Bank of New Zealand raised market expectations that it would cut interest rates twice before the year is over.