A new survey shows that although New Zealand business sentiment is improving a window has opened to allow the Reserve Bank of New Zealand (RBNZ) to cut interest rates by 50 basis points next week.

Of all the GBP exchange rates we monitor in our Week Ahead Forecast coverage, GBP/NZD is looking the most bearish.

The New Zealand dollar could come under pressure in the near term, but it is tipped to outperform in the long term.

The Pound and New Zealand Dollar have a lot of fundamental similarities, which have conspired to suppress volatility in GBP/NZD.