Kiwi weakens after weak GDP data

The kiwi weakened against sterling on Friday after disappointing New Zealand first-quarter GDP data hit demand for the South Pacific nation’s currency.

• The news that New Zealand’s economy had shrank by 1.0% in the last quarter was poorly taken by the markets, as they were expecting a 0.7% contraction. This fuelled speculation that the Reserve Bank of New Zealand may have to cut interest rates further.
  
• There are no major announcements due in the UK or New Zealand today, so investors will likely take their direction from broader market movements.