New Zealand Dollar Seen Rising 3.2% Against Euro as RBNZ Outpaces ECB
Updated
Updated · Bloomberg · Jul 27
New Zealand Dollar Seen Rising 3.2% Against Euro as RBNZ Outpaces ECB
3 articles · Updated · Bloomberg · Jul 27
Summary
Macquarie expects the New Zealand dollar to gain as much as 3.2% against the euro over the next three months, potentially reaching its strongest level in more than a year.
The call rests on a widening rate gap: overnight index swaps imply the Reserve Bank of New Zealand will raise its benchmark rate by more than 1 percentage point over the next year, versus about 75 basis points from the European Central Bank.
Westpac and Canadian Imperial Bank of Commerce are also bullish on the kiwi, reinforcing the view that tighter New Zealand policy will support the currency against the euro.