Westpac have gone long GBP/NZD at NZ$1.8615...>

FOREX: Westpac have gone long GBP/NZD at NZ$1.8615 with a target of NZ$1.9100.

They have a trailing stop, initially set at NZ$1.8450.

- Westpac note that "some uncertainty for the UK has been resolved with Johnson

now installed as PM. A honeymoon period may loom, and Johnson may initiate tax

and policy changes to bolster a market-friendly profile. A lift in sentiment

could trigger recently absent investment activity. Newly elected EU officials

and Brexit negotiators may be more open to discussion and the BoE may adopt a

less dovish stance as a result. The RBNZ is highly likely to cut the OCR on 7

August and signal the potential for more. We expect the OCR to be 1.0% by year

end (from 1.50% now). Yield spreads have explained much of the NZD's recent

gains, but they may soon become a headwind. Technically, GBP/NZD is at a

multi-year head-and-shoulders neckline - a sustained rebound would target at

least NZ$1.9500."