NZD/EUR to target the May low of 0.6160 - Westpac

NZD/EUR’s unwind of the May/June rally continues, which is likely to target the May low of 0.6160 multi-week, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Europe is effectively in recess until Sep, thanks to the vacation season. Illiquidity could see EUR volatility around data releases. Surveys have mostly remained at or near multi-year highs so that hard data for Germany will be monitored closely for moderation. Markets are geared for ECB guidance on tapering into next year.”

“The highlights of the event calendar this week are German trade (8th) and final July CPI (11th), plus Eurozone investor confidence.”

“3 months ahead: European economic data is improving, witness sentiment surveys at six 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. Adverse developments could push NZD/EUR beyond 0.66.”