NZD/EUR: Multi-month decline looks stretched - Westpac

Imre Speizer, Research Analyst at Westpac, explains that certainly NZD/EUR’s multi-month decline looks stretched in the low 0.62s.

Key Quotes

“The EUR bounced again on election results (this time the second and final round, with centrist Macron an easy winner against the populist Le Pen). However with that good news out of the way, and a split Parliament to look forward to, EUR may finally witness a pullback.”

“The highlights of the event calendar this week are EU industrial production for March (11th), ECB Bulletin and EC forecasts (11th), and German Q1 GDP (12th). Eurozone Q1 GDP continued its steady growth, but lags the persistent rise in survey data since Q3 16. Mar industrial production is released at the same time as EC updates its forecasts for the region next week. Could hard data start to reflect the rise in surveys?”

“3 months ahead: The makeup of the French Parliament, plus Brexit negotiations, are factors which could eventually turn NZD/ EUR around.”