NZD/EUR stretch could run to around 0.60 - Westpac

Imre Speizer, Research Analyst at Westpac, explains that NZD/EUR’s multi-month decline persists, and at a stretch could run to around 0.60.

Key Quotes

“Sustained improvements in EU data evident into 2017 have reduced negative risks for ECB, but affirmation of the pick up in core inflation is still needed to suggest an early ECB policy change.”

“The highlights of the event calendar this week are Germany final 1Q GDP (23rd), May IFO (23rd), GfK consumer confidence, regional Markit flash May PMIs (24th). French Assembly elections (11th/18th June).”

“3 months ahead: After easing recently, political tensions in EU could still resurface, with Austria calling early elections in 4Q, and a chance of early elections in Italy. A rebound in NZD/EUR to the mid-0.60s is possible.”