NZD/EUR likely to remain capped by 0.62 - Westpac

NZD/EUR is likely to remain capped by 0.62 in the near term as election uncertainty hangs over both EUR and NZD, via a period of Germany and NZ coalition formation, suggests Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The event calendar this week includes Eurozone unemployment (2nd), final PMIs (2nd), coalition negotiations.”

“3 months ahead: European economic data is improving, witness sentiment surveys at multi-year highs. However, after easing recently, political tensions in the EU could still resurface, with Austria calling early elections in 4Q, and a chance of early elections in Italy. Barring political shocks, NZD/EUR should gravitate lower to the high 0.50s.”