European stocks boosted the pound vs kiwi yesterday

The pound managed to recover nearly a cent, 0.4%, against the New Zealand dollar yesterday as investment demand returned to the UK currency.

• Data showed that in July, production rose by 0.9%, which fuelled a wave of optimism about UK economic recovery.
  
• Bolstering the optimism was a forecast from the National Institute of Economic and Social Research which estimated that GDP rose in the third quarter by 0.2%, which, if correct, would suggest that the UK is out of recession.
  
• Sterling also received a boost from European stocks which continued their strong run.
  
• Trading this morning has seen the pound make further inroads into last week’s losses against the kiwi, currently up around 0.4%.
  
• The current strength of the kiwi will have investors around the world focused on the rate decision and corresponding statement released by the Reserve Bank of New Zealand at 22:00BST today, which could have a significant impact on the currency.