Partner Center Find a Broker

It’s PMI day for the major European economies today!

While the dollar may continue to gain against its major currencies, manufacturing, and services activity in the European region could inspire some serious intraday moves.

Before we check out GBP/NZD’s setup, make sure to read the top headlines that moved the majors during the Asian session:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Germany’s GfK consumer climate at 6:00 am GMT
  • France’s manufacturing and services PMIs at 7:15 am GMT
  • Germany’s manufacturing and services PMIs at 7:30 am GMT
  • Eurozone’s manufacturing and services PMIs at 8:00 am GMT
  • U.K.’s manufacturing and services PMIs at 8:30 am GMT

What to Watch: GBP/NZD

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

GBP/NZD is trading in a tight range after falling by around 800 pips in a month. The current consolidation lines up with a tight range from back in early July.

What’s more, a quick look at the daily chart also tells us that GBP/NZD’s current levels are right around long-term ascending channel support.

Earlier today the Reserve Bank of New Zealand (RBNZ) kept its interest rates steady but noted that members still need to “provide significant economic support for a long time” to hit their targets.

As dovish as the news is, it’s a drop in the bucket compared to what pound traders are pricing in.

Aside from the Bank of England (BOE) talking negative interest rates, the U.K. is also dealing with a second wave of COVID-19 cases AND a Brexit that has more drama than an episode of The Real Housewives of Beverly Hills.

But GBP/NZD remains supported by its long-term support levels so it’s worth considering that GBP/NZD could rally at the first signs of positive news.

A break above September’s highs could lead to a retest of the 1.9500 area of interest. A break below its current consolidation, on the other hand, could drag the pound all the way to the 1.8725 levels.

What do you think? Will today’s PMIs from the U.K. and the major eurozone countries cause a reversal for GBP/NZD? Or will today’s catalyst finally drag GBP/NZD below its key support levels?