NZD/EUR: Near term corrective bounce to around 0.6600 is warranted - Westpac

Imre Speizer, Research Analyst at Westpac, explains that after a multi-week slide to the 0.6400 area for NZD/EUR cross, a near term corrective bounce to around 0.6600 is warranted.

Key Quotes

“Datawise this week, retail sales will be the highlight. Otherwise, the French presidential election (first ballot 23 April) will remain the main geopolitical risk in the region.”

“3 months ahead: NZD/EUR should continue to decline during the months ahead to below 0.6300 if the French election does not surprise. Consistent polling for a Macron win in a face off with Le Pen is market and EUR supportive. However, the high level of undecided voters (30%) means that there are equally high risks of a shock. Beware the polls.”