NZD/EUR medium term downtrend intact – Westpac

The NZD/EUR downtrend remains intact with 0.58 level being vulnerable, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Strong Eurozone activity and surveys have been driven by Germany, supporting the EUR nonetheless.”

“The event calendar this week includes EC Curr Acc (& construction output (17th), EZ cons. conf. (22nd), GE final 3Q GDP & Markit Flash PMI’s (23rd). A plethora of ECB and EU speakers over the next week will attract market attention.”

“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 disconcerting rises in periphery parties in Germany and the prospect of Italian elections in H1 18. A German coalition may take months to form. Barring political shocks, though, NZD/EUR should gravitate lower towards 0.56.”