NZD/EUR recent rise could extend to the 0.65 area - Westpac

NZD/EUR’s recent rise could extend to the 0.65 area during the week ahead suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The ECB did not give any hawkish signals from its meeting last week, suggesting policy will remain accommodative for some time yet.”

“The highlights of the Eurozone event calendar this week are German Apr. trade (9th), Ge & EU June ZEW surveys (13th), Ge May CPI, EU Apr. ind. prod. & 1Q empl. (14th), EU trade (15th). Non-data events include French Assembly elections (11th/18th June), Italian local elections (11th/25th June), and Brexit negotiations (19th 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. Adverse developments could push NZD/EUR into the mid-high 0.60s.”