NZD/EUR: Expect further declines to the 0.6400 area this week - Westpac

According to Imre Speizer, Research Analyst at Westpac, the initial French election results have boosted EUR and pushed NZD/EUR lower and they expect further declines to the 0.6400 area this week.

Key Quotes

“Centrist and pro-EU Macron won the first round, and is on course to defeat populist Le Pen in the second round on 7 May. This week it’s worth watching the ECB decision (27th). The low level of core CPI and recent ECB members stating that their policy bias is balanced and neutral suggests that the meeting will leave policy unchanged.”

“3 months ahead: Assuming a centrist win during the April/May Presidential election, NZD/EUR should resume the March decline during the months ahead to 0.6300 or lower.”