NZD/EUR stuck inside a 0.6350-0.6725 expanding range - Westpac

Imre Speizer, Research Analyst at Westpac, notes that the NZD/EUR cross remains stuck inside a 0.6350-0.6725 expanding range, grinding towards the upper bound.

Key Quotes

“Markets are pricing in risks of political populism, which is negative for the EUR given its inherent anti-Eurozone tendencies. This week the ECB meets and should extend its QE policy, although its the pace of bond-buying and likely duration which will be of most interest to markets.”

“3 months: Longer term, credit and political risks should weigh on the EUR: Dutch, French and German elections in 2017. There also remains the prospect of further easing measures from the ECB (for example a formal extension of QE beyond March 2017). NZD/EUR should remain above 0.64.”