ECB this week to support NZD against the EUR
A snippet from ASB on the European Central Bank this week.
(meeting is Thursday)
We suspect upward pressure on NZD crosses to remain a feature of currency markets this week.
Thursday night's ECB meeting will be the highlight of the week. We don't expect any policy change but the risk is tilted in the direction of more dovish rhetoric as the ECB steers the market towards more easing later in the year (we expect a 10bp cut in the deposit rate in September). NZD/EUR should remain supported as a result.
- NZD mainly sideways for the balance of this year
- To firm from late 2019 onwards