NZD/EUR looks poised to test the 0.60 area - Westpac

According to Imre Speizer, Research Analyst at Westpac, NZD/EUR looks poised to test the 0.60 area during the week ahead.

Key Quotes

“Eurozone economic data has generally been solid, and politics in Catalonia has only been a minor headwind for the EUR so far. The event calendar this week includes GE factory orders (6th), GE (9th) & EZ (10th) industrial production, GE (10th) & EZ (16th) trade data (10th). and final GE CPI (13th).”

“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 to the high 0.50s.”