NZD/EUR medium term downtrend stalls – Westpac

The NZD/EUR downtrend has stalled around 0.58 as current account surplus widening plus stronger manufacturing activity has been offset by slippage in core inflation, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The event calendar during the week ahead includes CPI (30 Nov) and GDP (5 Dec).”

“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.”