NZD/EUR: Recent rise could extend to the 0.64-0.65 area - Westpac

In view of Imre Speizer, Research Analyst at Westpac, NZD/EUR’s recent rise could extend to the 0.64-0.65 area during the week ahead.

Key Quotes

“The EUR has been ruffled by signals from the ECB during the past week. Several senior officials, including Draghi, signalled that the ECB is some way off changing its guidance to a neutral one. Inflation, particularly in wages, remains well below target. Markets had previous expected a change at the June meeting.”

“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-high 0.60s is possible.”