Pound is rallying against the kiwi dollar as investors book profits ahead of the weekend

The pound achieved a ten-day high against the kiwi yesterday, as bullish comments combined with profit taking to bring the UK currency off multi-month lows.

  • The UK currency was buoyed by comments that quantitative easing is in fact having its desired effect and that the MPC may not need to extend QE in their next meeting as many has speculated they would.
  • The news triggered a wave of profit taking, pushing the sterling/kiwi price up two and half cents on the day to close at 2.1849.
  • There was positive news from the US yesterday in the form of corporate earnings, in particular, Goldman Sachs and Citigroup, but the rise in risk appetite failed to assist the higher-yielding currency as investors chose instead to lock in profits.
  • The pound has extended its climb in trading this morning, currently edging back over 2.19 as investors continue to profits ahead of the weekend.