NZD/EUR could rise further to 0.6575 - Westpac

NZD/EUR’s could rise further to 0.6575 during the week ahead, although the cross is looking technically stretched and European data flow has been ok, warning of a reversal not too far away, suggests Imre Speizer, Analyst at Westpac.

Key Quotes

“The data highlights are EU June cons. conf. and ECB Econ Bulletin (22nd), flash June PMIs (23rd), and IFO June survey (26th). Also worth watching are Italian local 2nd round elections (25th June), and of course the Brexit negotiations.”

“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.”