The Pound to New Zealand Dollar exchange rate is being hindered from gaining due to mixed market appetite for risk-correlated currencies. 

Data released by the Office for National Statistics (ONS) showed that 730,000 people in the UK have lost their jobs since the start of the coronavirus crisis. Additionally, regular pay fell by 0.2% in Q2, compared to the same time in 2019.

This paired with the current coronavirus situation and the ongoing Brexit talks did not help to improve the pair’s value. 

On the contrast, New Zealand handled the coronavirus pandemic very well, leading traders to prefer the Kiwi rather than the Australian Dollar. Today, the Reserve Bank of New Zealand (RBNZ) is set to announce its August policy decision. 

Moreover, the GBP/EUR rebounded from last week’s drop of 1.11 to 1.10, recovering from its losses. The pair currently trades in the interbank region of 1.11, which is its best levels since the first half of July. 

The UK job market report shed a gloomy outlook on the Pound’s future, with experts estimating that the unemployment with get worse in the coming worse.

“As the Job Retention Scheme unwinds, we expect unemployment to rise quickly in the fourth quarter. That could see unemployment average over 6% this year compared to only 3.9% at present,” KPMG’s Chief Economist Yael Selfin said.