Sterling has picked itself up from multi-year lows against the kiwi, buoyed by improving economic sentiment

The pound was able to reverse a four day slide against the kiwi yesterday, following positive data in the UK labour market.

  • Figures showed that fewer than expected Britons claimed for unemployment benefit month-on-month in September, and the overall unemployment rate held steady at 7.9%, beating market expectations of a rise to 8.0%.
  • The kiwi also suffered after some investors turned bearish following weak US retail sales, which fell in September by the largest amount in 2009, driven by a fall in car sales at the end of the country’s scrappage scheme.
  • The pound was able to reach up over 2.17, but in a market that remains broadly bearish towards the pound, the kiwi trimmed its losses, with the price closing at 2.1600.
  • The New Zealand dollar has climbed again this morning, supported as stronger-than-forecast inflation data raised the prospect of an interest rate rise sooner than expected.