• GBP/NZD steadied around 2.3640 on Monday investors looked ahead to crucial US inflation data and UK GDP readings due this week for fresh insight into the economic outlook.
• US headline inflation accelerated to 3.7% year-on-year (YoY), up from 3.4% in August, while core CPI, which excludes volatile food and energy prices, is expected to rise 2.5% YoY.
• Investors are turning their attention to the UK’s monthly GDP figures for August, scheduled for release on Thursday.
• The UK economy is forecast to have contracted by 0.1% in August, following 0.4% growth in July. Investors will also monitor manufacturing and industrial production figures for further clues on economic activity.
• UK Finance Minister John Healey’s meetings with international counterparts at the IMF’s annual gatherings will also draw investor attention this week.
• Immediate resistance is located at 2.3650(23.6%fib ), any close above will push the pair towards 2.3712 (Higher BB).
• Strong support is seen at 2.3552(Oct 9th low) and break below could take the pair towards 2.3476(SMA 20).
Recommendation: Good to buy around 2.3620 with stop loss of 2.3500 and target price of 2.3700
